September 25, 2024 at 09:00PM
Ahead of Kugler, the market was pricing in a 62% chance of a 50 bps cut on November 7.
Says she will support additional rate cuts going forward
Fed should keep focus on reducing inflation and also shift attention to maximum employment
Estimates PCE inflation at 2.2% in August, Core PCE at 2.7% in signs of progress towards goal
May tame some time to feel that prices are back to normal
There has been a significant moderation in the labor market recently
Expects spending to grow at a somewhat more moderate pace moving forward
Fed must now ‘balance its focus’ to continue to make progress on inflation while avoiding unnecessary pain in the economy
There is nothing surprising in the comments, which match up with what Powell and Waller have said.
This article was written by Adam Button at www.forexlive.com.