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Economic Commentary

Quantitative tightening to ramp up quickly

April 11, 2022
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The minutes from the most recent (March) Federal Open Market Committee meeting were released last week. The details indicated that policymakers are keen to lower inflation by reversing expansionary policy at a rapid pace by both increasing policy interest rates (perhaps at a faster pace than financial markets expect) and starting to reduce the size of the Fed’s balance sheet.

What we learned last week: (pg. 1)

  • The Fed’s balance sheet runoff should start soon
  • The ISM services prices paid index rose again

What we’re watching this week: (pg. 2)

  • Consumer prices likely surged for March, led by food and energy
  • Rising prices probably boosted retail sales
  • Growth expected for industrial production (IP)

View our informative commentary on the economy and financial markets – and find out what we’re watching for the week ahead:

View our informative commentary on the economy and financial markets – and find out what we’re watching for the week ahead.

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