The Fed committee is moving more hawkish over time, EY-Parthenon Chief Economist Gregory Daco says. He says he wouldn't be surprised if the next FOMC statement included dual-sided language if tensions in the Middle East persist. Daco adds that markets are broadly aligned with the Fed's reaction function, pointing to little appetite for easing rates this year.

2026-04-30

The Fed committee is moving more hawkish over time, EY-Parthenon Chief Economist Gregory Daco says. He says he wouldn't be surprised if the next FOMC statement included dual-sided language if tensions in the Middle East persist. Daco adds that markets are broadly aligned with the Fed's reaction function, pointing to little appetite for easing rates this year.