- We continue to think we don’t need a large rise in the jobless rate to get inflation to target
- There is room to grow and add jobs even as inflation moves closer to 2%
- Signs of financial stress are particularly evident among renters
- We can’t rule out bumps but increasingly we look to be on our way to hitting the inflation target
- Path to a soft landing has always been narrow and we have yet to fully stick the landing
- We are starting to see evidence that wage growth is moderating
- Looking forward we will look for wage growth to moderate further
- Gov’t has some room to slow non-permanent residents without tightening labor market too much
The market was pricing a 70% chance of a July rate cut before these comments and he’s certainly not pushing back on that. I’d bump those odds even higher now.
This article was written by Adam Button at www.forexlive.com. Source