Economists said the main takeaway from Fed Chairman Jerome Powell's press conference was that the central bank was hurrying up the first rate hike.
The Federal Reserve on Wednesday took giant steps toward scrapping its easy policy stance that was insurance for the economy hit hard by the coronavirus pandemic.
Avoid the word hawkish Although the knee-jerk reaction from many was that the Fed is moving in a hawkish direction, Richard Moody, chief economist at Regional Financial Corp, said it was important not to use that word, at least not yet. March or May for first rate hike Economists began to debate whether the Fed rate hike — the first since December 2018 — would come in March or May. Ethan Harris, global economist for Bank of America Securities, said he shifted his forecast for the first hike to March from June. Powell hinted that Fed policy would not wait for a full recovery given elevated inflation. Josh Shapiro, chief U.S. economist at MFR Inc, picked May for the first hike.
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