January 03, 2025 at 05:12PM
More from Fed’s Barkin:
Still perceive core underlying inflation is coming down nicely
Message from businesses is loud and clear that consumers are becoming more price sensitive
Expect 12-month inflation to decline in coming months, particularly given base effects over prior year
Pass through from tariffs to prices is not straightforward, depends on multiple factors including business supply chains and price elasticity of consumers
Says he is in the camp of staying restrictive for longer given possible upside inflation risks
Conditions for cutting rates again include confidence in inflation’s return to 2% or weakening of demand
Companies feel more optimistic about the economy but are concerned about how coming changes will impact their businesses.
Barkin’s comment that underlying inflation is still coming down is encouraging.
S&P index is up 1.03%. While the NASDAQ index is up 1.36% after testing its 200 hour moving average at 19571 (high price reached 19567.12).
This article was written by Greg Michalowski at www.forexlive.com.
