September 20, 2024 at 06:01PM
Sees progress on inflation and labor market cooling since mid-2023
Believes smaller initial move preferable to avoid premature victory declaration
I see the risk that the Committee’s larger policy action could be
interpreted as a premature declaration of victory on our price stability
mandate
Although hiring appears to have softened, layoffs remain low
Consumer spending reflects a healthy economy
US economy remains strong with solid growth and near full employment
Labor market normalizing but measurement challenges create uncertainty
Inflation still above 2% target, core PCE above 2.5% y/y
Argues for measured pace toward neutral policy to ensure further inflation progress
Committed to working with FOMC colleagues despite disagreement on cut size
It’s normal for dissenters to publish essays or statements to explain themselves. Hers was the first dissent by a Fed Governor since 2005 but isn’t particularly impactful in terms of policy. She is going to support ‘moving at a measured pace’ towards neutral going forward.
This article was written by Adam Button at www.forexlive.com.
