FED: MNI Fed Review - May 2024: High (But Not Higher) For Longer Our review of
the May 2024 FOMC meeting has been published and emailed to subscribers- PDF
here: https://roar-assets-auto.rbl.ms/files/62432/FedReviewMay2024.pdf. * The
May FOMC outcome leaned dovish, with markets relieved by three aspects in
particular: the maintenance of the Committee's bias toward the next move being a
rate cut; Chair Powell describing a rate hike as "unlikely"; and a more
aggressive reduction to balance sheet runoff than had been expected. * While the
FOMC's confidence in the progress of disinflation has faltered following recent
CPI/PCE data disappointments, they continue to see policy as being restrictive
and in a "good place". * Though the bar to cuts has been set a little higher,
the bar to hikes appears to remain about as high as ever.
May-02 12:04
