22 March 2023
Having raised rates by 25bps (as expected) and offered a dovish bias to the statement with regard future rate-hikes, Fed Chair Powell now has the unenviable task of threading the needle between too-dovish (what does Powell know about just how bad the banking crisis really is…and what will that do to inflation) and too-hawkish (omfg, Powell’s going to kill the banks to crush inflation).