More from Fed’s Jefferson: Current policy is restrictive

More from Feds Jefferson:

  • It could be the case that rise in the long-run treasury yields reflects anticipation for strong growth
  • Current policy is restrictive.
  • Finding the right stance of policy is my concern.
  • As a policymaker unmindful cumulative effects of past rate increases has NOT been felt
  • We need to do our work to bring the inflation rate down before we can assess what long-run R-star is
  • Cannot say if rate cuts might be needed next year yet.
  • Our objective is for balance sheet policy to work in harmony with policy rate, but it depends on what is happening in the economy
  • Need to be nimble with regard to what is happening in the economy
  • Employment growth is a good thing
  • We just want job growth to be consistent with path of inflation toward 2%

Fed probabilities now:

  • 14% in NOvember vs 16% earlier today
  • Price of cut in June 2024 vs July earlier today

This article was written by Greg Michalowski at Source