monetary policy normalization

Fed Holds Steady Amid Uncertainty; Markets Eye Dot Plot, QT Strategy, and Global Risk Sentiment

“When the path is uncertain you go a little bit slower” – Chair Powell. The expectation is for the Fed to leave  their policy rates unchanged at 4.25-4.50%. To us, uncertainty around the macro environment and politics will  likely equate to little changes to the Fed’s forward guidance. Powell will likely want to keep all the options open.