With Chairman Bowell's signal that interest rate hikes have stopped, inflation stabilized, and the economy is slowing down!

The market seems convinced that interest rate hikes will stop in June. The reason was that Director Jefferson and WSJ Timiraus suggested skipping interest rate hikes. Director Waller of the hawkish faction also approved the option of raising interest rates or skipping them. It seems that Chairman Powell decided to stop raising interest rates even before the employment statistics. This is probably because it was determined that inflation was stable even in a strong labor market. Director Jefferson anticipates a slowdown in the economy due to a credit crunch. Wage increases have been suppressed at 5%, and policy interest rates are appropriate. There is a possibility that Chairman Powell placed his trust in the neutral Director Jefferson from the hawkish director Waller, and the possibility that interest rate hikes will resume is currently not anticipated.

Overall inflation has not risen, and core inflation is low. The credit crunch makes economic deceleration certain, and I think there is no essential difference between suspension and complete suspension.