- Household balance sheets have weakened, over time they will normalize and be less of a factor in driving consumption
- Labor market seems to be rebalancing in a way that is allowing lower inflation without unemployment
- Recent rise in productivity suggests supply side healing form the pandemic
- Perhaps potential GDP growth has risen
- Will be looking at the totality of data in making rate cut call, wants to see evidence that inflation is ‘sustainably’ headed to target
More to come.
This article was written by Adam Button at www.forexlive.com. Source