More from Fed’s Barkin:
- Still perceive core underlying inflation is coming down nicely
- Message from businesses is loud and clear that consumers are becoming more price sensitive
- Expect 12-month inflation to decline in coming months, particularly given base effects over prior year
- Pass through from tariffs to prices is not straightforward, depends on multiple factors including business supply chains and price elasticity of consumers
- Says he is in the camp of staying restrictive for longer given possible upside inflation risks
- Conditions for cutting rates again include confidence in inflation’s return to 2% or weakening of demand
- Companies feel more optimistic about the economy but are concerned about how coming changes will impact their businesses.
Barkin’s comment that underlying inflation is still coming down is encouraging.
S&P index is up 1.03%. While the NASDAQ index is up 1.36% after testing its 200 hour moving average at 19571 (high price reached 19567.12).
This article was written by Greg Michalowski at www.forexlive.com. Source