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One Bank Throws Up All Over The Fed's Latest Laughable Forecast
While Bank of America's chief economist agrees with the Fed's decision to hike 75bps (as it conforms with the bank's philosophy of moving faster and catching up to the curve), Ethan Harris strongly disasgrees with the Fed's growth and inflation forecasts, which have already received a dollop of criticism for being anything between too optimistic to just outright stupid. The problem, as Harris notes, is that markets should be bracing for both weaker growth and higher inflation than the Fed is willing to acknowledge. Indeed, while Powell described the economy as still “strong” (it isn't) after a 1.4% drop in 1Q, ... (full story)