The Fed remains behind the curve and is more hawkish than three months ago.

The Federal Reserve continued its move to a much more hawkish position last week. They moved managed interest rates up 75 basis points. This is the third such move since March with each move more than the previous one. This is a total of 150 basis points over the past three months. Further, the statement and press conference that followed indicated another 75 bp increase is on tap at the July FOMC meeting. The Fed is determined to remove any stimulative monetary policy and dampen final demand in order to address the inflation pressures which continue to plague the economy.

 

PROBANK AUSTIN ADVISOR - JUNE 20, 2022