Inflation remains unacceptably high, well in excess of the Federal Open Market Committee (FOMC) target of 2%. • During 2022, the FOMC has been moving toward policy settings that will put meaningful downward pressure on inflation in order to return inflation to the 2% target. • This approach has included significant increases in the policy rate as well as a program of balance sheet reduction. • Thus far, the change in the monetary policy stance appears to have had only limited effects on observed inflation, but market pricing suggests disinflation is expected in 2023. The most recent FOMC statement refers to ongoing ... (full story)