Expect Inflation to Be Stickier, BofA's Gapen Says

The transcript discusses the Federal Reserve's recent policy actions and market reactions, focusing on the balance between rate hikes and balance sheet runoff. It highlights the Fed's cautious approach, the potential for continued tightening, and the economic impact of these measures. The discussion also touches on the timing of the tightening cycle's effects on economic data and growth expectations for 2023.

What are the implications of the Fed's decision to slow down rate hikes on market expectations?

What factors contribute to the perception of inflation being stickier according to the text?

How does the balance sheet runoff relate to the Fed's rate hike strategy?

What are the differing views on the Fed's future actions regarding rate cuts and balance sheet management?

Discuss the potential timeline for seeing the effects of the tightening cycle in economic data.