Drew Matus Inflation Quotations

If we get more inflationary data, that could bring people back to their senses. Just because the Fed talks about inflation in a benign way one meeting doesn't mean that feeling will be pervasive at the next meeting.

Growth is strong. Inflation is making them a little nervous, even though they reiterate that core inflation and long-term inflation expectations are contained.

I think if you look at the way the U.S. economy has developed over the last few months, you still have strong payroll growth, you've got a little bit of inflation pressure and you have very strong income growth. So the actual economy is not all that different from when the Fed started its rate hike cycle.

We're right where they want us to be -- between 2 and 2.5 percent increases in the core CPI. But last year there was more inflation than they were anticipating at the beginning of the year, and the concern you hear being expressed is that they don't want that to happen again.

The market liked what it didn't see. The market got itself worked up about the Fed possibly being more aggressive about inflation and when that didn't appear in the minutes, investors then focused on a relatively benign view of inflation.