Hawkish

A hawkish stance means the central bank is more concerned about inflation than economic slowdown.

Hawkish Actions: - Raising interest rates - Reducing asset purchases - Shrinking the balance sheet - Warning about inflation risks

Hawkish Rhetoric: 'We are committed to bringing inflation down' or 'Price stability is our priority'

Stocks Hawkish signals typically pressure stock prices, especially growth stocks that rely on cheap borrowing.

Bonds Bond prices fall (yields rise) on hawkish news as investors price in higher rates.

Dollar Hawkish Fed typically strengthens the dollar as higher rates attract foreign capital.

Gold Usually falls on hawkish signals as higher real yields make non-yielding gold less attractive.

Words to Watch: - 'Elevated inflation' (hawkish) - 'Vigilant about price stability' (hawkish) - 'Whatever it takes' (very hawkish)

Hawks vs Doves Fed governors are often categorized as hawks or doves based on their voting history and public statements. The balance affects policy direction.