On the Fed Statement

A few comments.

First, this is a mercifully short statement. This is what happens when a lawyer runs the Fed instead of economists. Powell must be taking my advice.

Second, the big headline is that the Fed is now calling for four rate hikes this year, but the median forecast has changed due to one vote. This is hardly a big change in outlook.

Officially, the median FOMC voter expects two more hikes this year, plus three more next year and one in 2020.