- Too soon to judge path of interest rates
- Logical that tariffs are a one-off rise in prices but backdrop of high inflation runs the risk of unanchoring inflation expectations
- Can’t allow inflation expectations to get unanchored
- So far long-run inflation expectations haven’t moved much
- Tariffs are somewhat inflationary and also slow growth
- Independent monetary policy leads to better outcomes
There isn’t anything new here but commentary continues to run counter to the 65% chance of a June cut that’s priced in.
This article was written by Adam Button at www.forexlive.com.