“During Powell’s confirmation hearing before the Senate Banking Committee today, inflation was on top of the agenda and it was clear that Powell abandoned the transitory narrative just in time,” Rabobank’s Research Analysts said.
Additional quotes
“Powell wants to prevent higher inflation from becoming entrenched, which means that the Fed is in a hurry to start raising rates and to start reducing the balance sheet.”
“However, questions remain how ‘hawkish’ the Fed will remain if inflation – in line with the Fed’s projections – comes down later this year.”
Read: US Inflation Preview: Dizzying heights of 7% would cement a March hike, supercharge the dollar
