January FOMC Minutes Reveal a Central Bank at a Crossroads

Published on
February 15th, 2022
42 minutes

Hot January CPI Is a Big Piece of the Rate-Hike Puzzle

January FOMC Minutes Reveal a Central Bank at a Crossroads

Live ·
Featuring Jim Bianco and Alfonso Peccatiello

Published on: February 15th, 2022 • Duration: 42 minutes

As Jim Bianco frames the problem, the Federal Reserve “wants to find a way to make inflation come down and the stock market go up. Unfortunately they have to pick one." Investors will note that minutes for the January meeting of the Federal Open Committee Meeting show a majority of members agrees that a faster pace of rate-tightening than in the 2015-to-2018 period is warranted as well as the fact that members broadly agreed to accelerate the reduction of the Fed’s balance sheet compared to its December projection. Bianco, president and macro strategist at Bianco Research, joins Alfonso Peccatiello, author of The Macro Compass, to talk about how the Fed will respond amid market uncertainty and rising political pressure. As Bianco notes, choices the central bank makes to combat what now appears to be persistent inflation will have disparate impacts depending on where consumers sit on the income scale.