Fed Unfiltered, Weekly Report: Monday Morning Reset (1/23/23)

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Quick Overview

A near consensus on the terminal rate (currently 5.10%, December’s SEP).  About every Fed official who spoke last week mentioned going above 5.00%.  The next question is how quickly do we get there?  Bullard favors a 50bps hike, most however favor a 25bps hike. 

Regarding a recession, Bullard and Waller say the chances of avoiding one, “have improved markedly”.

A report from the Cleveland Fed discusses how inflation could be dealt with faster if a recession occurred.