Musalem:
- Inflation is stills above target
- Today’s world is very different from the pandemic, one in five chance at most that Fed
Schmid:
- Will lean very much on hard data in making interest rates decisions, allows for less focus on forecasts
- Fed needs to be careful how much emphasis it puts on soft data
- The Fed needs to think hard in future years about when and how it wants to use the balance sheet
The market has priced in 83 bps in easing in the year ahead.
This article was written by Adam Button at www.forexlive.com.
