Former FOMC George: Jobs report raises questions about the timing and number of rate cuts

Comments from the recently-retired KC Fed President:

  • We certainly don’t seem to be seeing a growth slowdown just yet.
  • I’d be resetting my own expectations around how soon rate cuts should come and say the economy has held up pretty well.
  • It is a strong jobs report for sure.
  • They probably didn’t get the jobs report till late yesterday afternoon.
  • I think the Fed is well aware that inflation must be convincingly defeated before they make a move.
  • You know seasonal adjustment factors all these things you got to maybe take January with a bit of a grain of salt
  • I just think markets may continue to be frustrated by messaging that is a little more cautious around this idea of gaining greater confidence
  • I think we could still see rate cuts certainly this year but how many and how quickly those start I think today’s report is a reminder uh not to get ahead of ourselves on that
  • There is vulnerability in banks on commercial real estate and often things can snowball depending on other events that happen
  • I think fiscal issues are probably one of my biggest concerns and I think one that will have to be addressed.
  • Highlights risks around the fed balance sheet

It’s a candid discussion that you can see here.

This article was written by Adam Button at Source