Fmr. Fed Vice Chairman Alan Blinder: Markets are reading FOMC meeting as more hawkish than it was

• Markets are reading the Fed's tone as slightly more hawkish than it actually was, though inflation remains a key concern.
• The ongoing oil shock is a major source of uncertainty, with potential for broader inflation across goods and services.
• The Fed's staff has upgraded the long-term GDP growth trend, driven by an observed productivity boom.

Former Fed Vice Chairman Alan Blinder discusses the Fed's hawkish tone, noting that markets might be overreacting slightly. He highlights the persistent inflation, exacerbated by the ongoing oil shock, which is expected to have broad economic impacts beyond just gasoline prices. Blinder also points to the Fed's recent upgrade of long-term GDP growth due to a productivity boom as a notable positive economic development.