The Fed: Pre-Powell Ponderings

Discussion

With Core CPI surprising to the downside and the soft landing narrative running full blast among economic and financial market participants, the natural inclination is that the Soft Landing King, FED Chair Jerome Powell, will bless the widening path to a soft landing and it’s up, up and away for economic growth and equity markets with the Fed on hold and inflation vanquished. Two prior FOMC meetings against a similar narrative backdrop since the Fed’s tightening program began in late 2021 provide a template for how Powell is likely to handle his press conference on Wednesday: July 27, 2022 and February 1, 2023.