FOMC Members are seeing Inflationary Risks on Upside, in May

FOMC Members are seeing Inflationary Risks on Upside, in May

FOMC Members are seeing Inflationary Risks on Upside, in May
  • All participant voted for 50 basis point hike
  • 50 basis point increase is likely appropriate to the next couple of meetings
  • concerned about the risks from higher income commodity prices
  • inflation remained elevated, reflecting continued supply and demand imbalances, higher energy prices, and broader price pressures. Inflation risk being skewed to the upside
  • restrictive stance on monetary policy may well become appropriate
  • Fed should move expeditiously to neutral
  • China lockdowns and Ukraine increased risks. New inflation pressures received from China as well as the Ukraine war, and were likely to weigh on economic activity
  • several thought the potential for unanticipated effects in the financial markets from the run off of the balance sheet
  • many expect tight labor market and wage pressures to continue for some time
  • Members judged that the implications of the war for the U.S. economy were highly uncertain
  • Higher wages and input prices were being passed on to consumers. Of course that will always happen
  • COVID-related lockdowns in China were likely to exacerbate supply chain disruptions
  • although overall economic activity had edged down in the first quarter, household spending and business fixed investment had remained strong
  • Job gains had been robust in recent months, and the unemployment rate had declined substantially.
  • should assess the risk the economy later this year after the rate hikes

You can read all from FED website : May FOMC Meeting 2022

Stocks Are up with 1%, because members of FOMC avoid risks of recessionary environment

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