January 15, 2025 at 03:27PM
Fed Barkin is speaking and says:
Inflation is coming down towards the 2% target.
Can see paths where inflation is sticky or continues to progress towards target.
Was encouraged by the unemployment rate in December.
Seems the job market has stabilized.
Not much to support arguments that the economy is growing weaker.
Not concerned about overheating economy right now; demand is solid but not booming.
Long rates right now are consistent with early 2000s, which was not a restrictive time for business.
Has not seen anything in long rates that would influence Fed policy at this point.
Regarding incoming Trump administration’s policies, the direction of travel may be clear on things like tariffs, but the details are not.
Businesses generally saying that price-setting behavior is moving to pre-pandemic patterns.
This article was written by Greg Michalowski at www.forexlive.com.