With Fed-Day upon us, Goldman Sachs trader Paolo Schiavone reminds clients of a quote from Powell press conference on the 29th of January.
I think if we look back over the past , we can see that policy is restrictive.
Now, policy is meaningfully less restrictive than it was before we began to cut.
It’s 100 basis points less restrictive.
And for that reason, we’re going to be focusing on real progress on inflation or, alternatively, some weakness in the labor market before we—before we consider making adjustments.
The starting point and the assumption here is that policy continues to be restrictive.
