QVMS - How The FOMC Sees The World Going Forward

• Chairman Powell made it clear in the FOMC post meeting press conference that the Committee is now frontloading return of its target federal funds rate range to a more “normal” position.
• The FOMC’s 75-basis-point increase in the target range on Wednesday is a tacit admission that the Committee was behind the curve in slowing inflation and that the problem it is now facing is not “transitory.”.
• Clearly, the Committee’s view of the economy and inflation going forward has shifted dramatically, and nowhere is that more apparent than in the Summary of Economic Projections released with the Committee’s statement after its meeting.

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