The vote was unanimous because FOMC is “strongly committed to returning inflation to its 2 percent objective”. Spending and Productions have softened but job gains was robust recent months. Balance sheet reduction ongoing as planned.
Summary from Powel
- Inflation is much too high
- There is still additional upward pressure on inflation
- We're highly attentive to inflation risks
- We are looking for compelling evidence of inflation coming down
- Although prices for some commodities have turned down, earlier surge has boosted prices and inflation pressure
- Inflation has surprised to the upside in the past year so we will need to be nimble
- Will watch PCE and CPI but think PCE is the best measure of inflation
- We need to see inflation coming down
- Labor market is extremely tight
- Wage growth is elevated
- Business fixed investment looks to have declined in Q2
- We want to see demand running below potential for a sustained period
- The pace of hikes will continue to depend on incoming data and evolving outlook
You can read full statement here https://www.federalreserve.gov/newsevents/pressreleases/monetary20220727a1.htm
Some Good news: instead of inflation is Atlanta Fed GDPNow final Q2 reading -1.2% vs -1.6% prior.
IMF Cuts Growth forecast from 2022 & 2023 again.
Germany August Consumers Sentiment dropped to lowest levels -27.7 vs -27.4.
Germany Rethink Nuclear Power Exit https://www.ft.com/content/cc422ece-92b3-41fa-a05c-900270bfe824
