Fed Shock, Not Awe: Macro Matters

FICC Focus · May 5, 2022 · 20m

In this Macro Matters edition, host and BI Chief U.S. Interest Rate Strategist Ira Jersey is joined by Anna Wong, Bloomberg Economics Chief U.S. Economist.

Wong and Jersey discuss the Federal Reserve's May 4th meeting which Chairman Jerome Powell squashed the possibility of a 75 basis point interest rate increase in June, which left the markets thinking the meeting was hawkish. Jersey notes he did not hear it that way, while Wong notes she expects two more 50 basis point increases, followed by a string of 25 basis point hikes. Wong goes over the hawkish and dovish scenarios for the the policy…