August 13, 2024 at 06:46PM
Fed’s Bostic is speaking and says:
Balance of risks in economy is getting back to level
Our rate posture is restrictive
That’s not where we want it to be forever
Recent inflation data give me more confidence we can get back to 2%.
We need to see a little more data
We need to make sure inflation trend is real
It would be really bad if we cut rates and then had to raise them again.
I am willing to wait for first rate cut but it is coming.
If economy evolves as I expect, there would be a rate cut by the end of the year.
Housing inflation has come down in an important way, the last couple of months.
Unemployment rate in the grand scheme of things is still historically low.
Still a strong solid labor market.
But we need to make sure we don’t go from a heart labor market to a freezing cold one.
contact don’t tell me there are many layoffs, if that continues will be in a good place.
Recession not in my Outlook
Labor market can slow but without considerable concern
What can we glean from comments:
He is ready to cut
But not by 50 bps.
Still cautious but sees policy as restrictive which implies if inflation falls as planned, there can be a series of cuts
This article was written by Greg Michalowski at www.forexlive.com.