00:00What's your initial reaction, given the fact this does seem to be a hawkish tilt on the committee and a
00:04very different statement?
00:06It is a hawkish tilt from the committee. Half of the committee is expecting rate hikes this year, which is,
00:14I think, a real shot across the bow to the market.
00:19We were thinking two, maybe three, to be decorative. We didn't think half the committee.
00:23So, you know, it's something quite different. When you look at the inflation projections, you know, we were thinking up
00:33a couple tenths.
00:34You're up six tenths, nine tenths for this year. So nobody at the FOMC is thinking that this inflation will
00:43be transitory enough and we'll see disinflation between now and the end of the year.
00:48So, yeah, I think this is a Fed that is sending a hawkish message. I think you have a Fed
00:55chair telling us he can't be bothered with the dots.
00:59I think that's a slap across the face. We'll see how he deals with that and the Fed going forward.
01:06They are concerned by the level of inflation. They are concerned about what they see in the CapEx cycle.
01:12They are somewhat scarred for 2022 and they don't want to repeat that mistake again.
01:18And they're watching other central banks coming out and lifting rates and their bond markets responding well to that.
01:25So I think they're reconsidering certainly where they were last meeting and they're getting us ready for rate hikes.
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