- We still have some work to do on inflation
- We have solid growth, solid labor market.
- What’s bothersome still is we haven’t achieved price stability.
- Focus is on inflation, other things don’t distract us.
- Policy, economy is in a good place.
- Rates have been restrictive for a significant number of years.
- June CPI showed some of the effects of tariffs..
- Other parts of inflation or coming down.
- The want to lower rates preemptively
- Two rate cuts this year is a reasonable outlook
- Businesses are optimistic.
- Businesses not stalling out
- Don’t need to slow growth precipitously to get last mile on inflation.
- Wouldn’t want to see more weakness in the labor market.
Given the inflation concerns and it being the middle of July, seeing two rate cuts puts her in a Trump friendly member – relatively to some of the others who are more quiet about number of cuts.
This article was written by Greg Michalowski at www.forexlive.com.