The Fed is really feeling the heat these days.
While inflation is starting to come down, it’s still far too high, with February CPI coming in this week at 6.0%.
Similarly, the latest government data on the jobs market shows its still far hotter than the Fed wants.
With data like this, the Fed can’t justify a pivot.
Yet at the same time, the swift & sharp increase in interest rates the Fed has engineered is now starting to result in casualties, such as the banking failures that have happened over the past week.
A big enough breakage in the system could force the Fed to change course.
How is the Fed navigating the increasingly tight spot it’s in?
To find out, we’re fortunate to be joined today by respected journalist Pedro de Costa. Pedro has spent the past 20 years covering central bank policy for publications such as Reuters, The Wall Street Journal and now MNI – Market news.