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Did The Federal Reserve Just Back Down? | Joseph Wang

Inflection Point

00:00

Why Chair Powell Paused on Unemployment Rates

Nick Timmer: Why would you pause now if we're just going to do two more rate hikes again towards the end of the year? Chair Powell really highlighted this idea between the speed and the level of rate. So I'd love it if you could unpack why you think they chose this particular force of action. Jack Shih: By telling the markets through their dot plots, that gets priced into the market a bit. And even though they're not hiking today, they did on the margins hike a little bit based on expectations.

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