Watch Powell Explain How A 25bps Hike Will Slay Runaway Inflation

Watch Fed chair Jerome Powell explain how (and why) a 25bps rate hike will be enough to combat 7.9% inflation.

And while watching his videoconference, which in the past has been meant to offset the kneejerk response to the Fed’s prepared statement, here is a cheat sheet to decide if he is leaning hawkish or dovish, courtesy of Newsquawk:

• Dovish: No B/S normalization calendar guide: walks back on every meeting in 2022 being live for rate hikes and pushes back on 50bps concern over sudden tightening of financial conditions: Ukraine growth shock concerns
• Consensus: B/S normalization calendar guide every meeting live for rate hikes, keeps door open for 50bps expects inflation to come down this year, albeit later than before
• Hawkish: B/S normalization details/guide for May start expresses appetite for 50bps hikes ahead front-loaded hikes worried most about inflationary impulses from Ukraine concern over long-run inflation expectations

And for those who can’t wait to start drinking, here is your FOMC drinking game:

FOMC Drinking Game:

nimble
flexible
care
caution
steady
series
data dependent
uncomfortably high (something other than a shot?)

What am I missing? (“inflation” would put everyone on the floor)

— Dr. Julia Coronado (@jc_econ) March 16, 2022

Watch live below: