Highlights of the Fed’s monetary policy report
Friday, 03/03/2023 | 16:04 GMT-0
03/03/2023 | 16:04 GMT-0
Financial conditions have tightened significantly since June
For core services ex-housing sector, inflation remains elevated; prospects for it slowing may depend in part on an easing of tight labor market conditions Market liquidity remained low in Treasury and other key markets
Bringing inflation back to 2% likely requires period of below-trend growth, some softening of labor market conditions
Underlying momentum in the economy likely remains subdued
Core foreign inflation remains high and inflation Read this Term
Will adjust balance sheet drawdown Read this Term
Tight labor market conditions have largely erased pandemic-induced widening of employment caps across demographic groups
Rate hikes have narrowed gap between policy rule settings and real-world level
Labor force participation rate is likely to remain well-below its level from before the pandemic
I don’t think the Fed is trying to send any signals with this report but it’s a nice review of what the Fed is worried about.
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