June 12, 2024 at 07:32PM
Recent indicators suggest economy still growing at a solid pace
Consumer spending remains solid
GDP has slowed but private domestic final purchases still growing at same pace as H2 2023
Labor market has come into better balance but April and May jobs data still strong
Unemployment rate ticked up but remains low
A broad set of indicators suggest we’ve returned to where jobs market as on the eve of the pandemic, relatively tight but not overheated
Inflation has eased notably
More-recent readings on inflation have eased somewhat
Reactions to these headlines have been nearly nil, so far.
Repeats that Fed will need greater confidence in inflation to cut rates, though most-recent numbers have showed modest further progress
Will need to see more good data to bolster confidence on inflation
There was a bit of USD buying on this.
Policy is well positioned
We will continue to make decisions meeting by meeting
This article was written by Adam Button at www.forexlive.com.