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No need to be in a hurry on policy rate adjustments
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Current policy rate well-positioned to deal with risks, uncertainties
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Could retain current policy restraint for longer, or ease policy, depending on inflation progress and job market
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Policy rate is now somewhat restrictive
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Labor market solid, well-balanced
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Latest data shows inflation moving sideways
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Longer-term inflation expectations remain consistent with 2% goal
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Rise in goods inflation partly due to trade policy; drop in housing services inflation could help counter
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Economy solid, but heightened uncertainty among consumers, businesses tied to trade policy
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If uncertainty worsens, economic activity may be constrained
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Negative sentiment often does not translate to slowdown in actual activity
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Recent signs that consumer spending may be weakening
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Anticipate some modest labor market softening this year
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Vigilant on spillovers from federal government layoffs to other sectors
These comments are in line with ones from yesterday and last week. Are they? Will the tariffs have an impact on spending/on inflation/on growth? Most likely.
THe Fed Chair will be speaking tomorrow. What he says will be most important. See Adam’s post HERE
This article was written by Greg Michalowski at www.forexlive.com.