The June FOMC meeting signaled a hawkish shift with nine policymakers projecting rate hikes this year. Chair Warsh also introduced five task forces to review Fed communications and framework policies.
Key Takeaways
- 1.The June FOMC meeting was distinctly hawkish, with nine policymakers projecting rate hikes this year and inflation forecasts marked up significantly.
- 2.Chair Warsh established five internal task forces covering communication, balance sheet, data quality, productivity, and inflation frameworks, suggesting potential substantial changes to Fed operations.
- 3.Markets reacted to the hawkish tone by bear-flattening the US rates curve and pushing the USD higher, anticipating hikes starting in October.
Table of Contents
- Rising risk of rising rates
- There's a task force for everything
- Rates: task force hawkish
- FX: hawkish Fed = bullish USD
- Statement: full overhaul
- SEP: very hawkish
- Press conference: task forces > economics
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Authors
Aditya BhaveMark CabanaAlex Cohen
Securities
UST 2YUST 10yDXY
Themes
Fed HawkishnessFed Task Forces
Regions
North AmericaUnited States