HALISTER1: Fed to Take ‘Hawkish Pass’ on Rate Hike in March: Renaissance

Fed to Take ‘Hawkish Pass’ on Rate Hike in March: Renaissance

(Bloomberg) -- While Fed is likely to pass on raising rates next mo., “we suspect the tone of the policy statement and the accompanying press conference will be more upbeat,” Renaissance Macro Research economist Neil Dutta writes in note.
  • FOMC hawks have “ammunition” heading into March FOMC mtg
  • Rise in inflation is likely to be “nurtured, not stopped in its tracks”
    • This should keep Fed hawkish relative to mkt expectations, dovish relative to Dec. SEP rate projections
  • Case for gradual increases remains in place
  • Growth/inflation estimates may be revised higher slightly
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Neil Dutta (Renaissance Macro Research LLC)

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