- Says she favors hiking if inflation progress stalls
This sounds hawkish at first but note that it’s incrementally dovish because she previously said that rates should rise.
- Inflation remains high, recent progress is uneven
- Baseline outlook is that the Fed will need to increase rates further to keep policy sufficiently restrictive
- Fed should keep in mind risks with prematurely declaring victory on inflation
This article was written by Adam Button at www.forexlive.com. Source