Federal Reserve Governor Kugler speaking in Q&A now
We’re at a place where we don’t want labour market to weaken furtherMakes sense to shift attention to employment mandate.Inflation measures excluding housing are near 2%, but that’s not what we target.We are making very good progress, but not at 2% yet.I don’t see that we will overshoot on inflation.It will still take us some time to get to 2% inflation.We have begun to recalibrate rateswe need to continue normalizing ratesMaybe some Fed policy makers would be willing to move expected 2025 rate cuts forward to 2024, or vice versa, depending on dataWe don’t pay a whole lot of attention to the neutral rate because there is a lot of uncertainty about itbelow 100K monthly job gain would be ‘very low’, must be mindful of potential downward revisions.Breakeven number for monthly job gains is anywhere from 100K to 240K.Policy is restrictive.With disinflation, we need to cut even to just keep where we are in terms of restriveness.
Kugler spoke earlier:
Fed’s Kugler says she strongly supported 50 bps rate cut
Its not just me picking up on the new script, is it?
This article was written by Eamonn Sheridan at www.forexlive.com.
