Fed Vice-chair Jefferson says will watch incoming data, making decision meeting by meeting

Federal Reserve Vice Chair Philip Jefferson:

  • FED rate cut ‘recalibrated’ policy to maintain strength of labor market.Economic growth is ‘solid,’ inflation has ‘eased substantially,’ labor market has ‘noticeably’ cooled.Inflation is much closer to 2% goal, expect to continue to make progress.Balance of risks to FED’s two mandates have been brought roughly into balance.Will watch incoming data, evolving outlook, balance of risks in considering additional policy rate adjustments.My approach to policymaking is to make decisions meeting by meeting.

There is nothing new or fresh in these comments, Jefferson more or less relating what we’ve heard from other Fed officials.

Earlier:

Williams spoke overnight, indicating two 25bp rate cuts at the next two meetings. I think that’s a good baseline for now. Still, we are going to have to watch the inflation data from the US due Thursday. A surprise is not expected (d’uh … if it was expected it wouldn’t be a surprise), but … stay tuned!

This article was written by Eamonn Sheridan at www.forexlive.com. Source