Did the Fed hit pause or did it hit skip? And what's the difference? This is the markets, a new

podcast from Goldman Sachs exchanges.

Hi, I'm Sam Grobart.

Today I'm joined by Johnny Fine, head of our investment grade new issue business in the Americas,

and we're going to talk about the latest moves from the Fed and the ECB

and how corporate clients are navigating these new economic conditions.

Johnny, thanks so much for joining us today.

And thank you for having me on. So let's talk a little bit about obviously

the big news of the week. The Fed met. It paused its interest rate hikes, but what do you think the Fed's dot plot,

its projection forward tells us is another hike possible later

this summer?

So I think the answer to that is absolutely yes. I think the market is calling yesterday's announcement

a skip, not a pause pause and a hawkish skip at that.

Although I think I kind of need somebody to tell me what's the difference between a skip and

a pause.

I think people are confusing when they say pause for the word peak.

Although yesterday I think it was made pretty clear that every other Fed meeting through year

end is now in play.

Although of course the Fed always has the option to change its mind.

I actually think yesterday and the prior FOMC was kind of a head-your-bet type of

FOMC announcement and press conference.

They want to see how the US economy reacts.

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