Wages on the Fed’s radar

Next week, the Fed will slow the pace of its policy rate hikes to +50bp after four successive hikes of +75bp. This will be the first sign of moderation in the current monetary tightening phase, which is already historic in terms of its speed and magnitude. Will Jerome Powell go as far as saying that the Fed is prepared to further slow its tightening pace to +25bp as of the following meeting in February? We have reason to doubt it. Inflation has admittedly started to decline in th...