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July 2022 Monthly
The major central banks were slow to respond to price pressures as the economies emerged from the unprecedented depths of the Covid crisis. They have pivoted toward more aggressive rate hikes. The conversion at the Federal Reserve has been stark. In an unusual admission, Federal Reserve Chair Powell acknowledged that the high May CPI and the rise in the University of Michigan's consumer (inflation) expectations prompted the 75 bp hike rather than the 50 bp move that had been signaled. The last-minute change left the Kansas City Fed President George in a difficult position. This noted hawk dissented at the June ... (full story)