- Tariffs increase prices one time, central banks can look through that.
- Tariff effects not zero, but are not large either.
- Has been arguing a pretty restrictive policy rate can come down.
- Unemployment is around long run level.
- Reiterate case for why July rate cut could happen, says an easing would not be political.
- THANKS that rates are 150 basis points above the long run steady state neutral
- Says the Fed is “just too tight”
- Admits that he is in the minority on this
This article was written by Greg Michalowski at www.forexlive.com.