Hot Inflation Readings Stir Up Debate at the Fed

The transcript discusses the impact of the recent FOMC meeting on investors and the market, highlighting the Fed's anticipated interest rate increases by the end of 2023. It addresses concerns about inflation, which has exceeded expectations, and the Fed's readiness to respond to inflation risks. The Fed's focus on full employment is contrasted with recent inflation readings, and the potential for inflation overshoot due to economic reopening is noted. The Fed's current stance is to remain patient, similar to its approach in 2018.

What factors are contributing to the recent overshoot in inflation?

In what ways might the new Fed differ from the one that raised rates multiple times in 2018?