Fed Projections: The Ceiling Is in Sight

By Felix Richter

If there has been one consistent theme in Jerome Powell’s statements throughout the inflation crisis, it’s been this: we’re not done yet. Whenever he was asked about future rate hikes, he repeated the same mantra of doing whatever is necessary to rein in inflation but not yet knowing where the ceiling was. Now, one year into the most aggressive tightening cycle since the early 1980s, that ceiling appears to be in sight.