- Additional rate increases likely in the coming months
- Inflation is much too high
- Forceful action is needed
- Substantial risk that high inflation could persist
- Labor market consistent with maximum employment
- Reducing balance sheet to appropriate and manageable level important additional step in addressing high inflation
This talk of ‘forceful action’ sounds like she’s open to 50 bps. Other influential Fed members have talked about being ‘deliberate’ and ‘gradual’ lately; there’s none of that here. The Fed blackout begins March 4 (next Friday) and you wonder how much uncertainty they want going into the March meeting.