Jerome Powell:
- The economy has slowed down
- inflation is much higher than a target of 2%
- the real estate sector is significantly weakened
- It will be unknown whether the recession and how deep
- Fed must see clear signs of slowing down inflation
-At some point, the Fed will slow down the rate of increase in the rate
- FRS members continue to see the risk of further growth in inflation
- Restoring price stability while achieving soft landing is difficult
- you need to increase the rate to a restrictive level (above neutral) and hold it at a high level for some time
- Median forecast of the Fed’s members - raising the rate by another 1.25% until the end of 2022
- It is highly likely that the Fed’s rate will reach a level of 4.6% in 2023, as predicted by the Fed’s members. This will be a significant limiting level of DCP
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