- Highlights what ‘appears to be a cooling in consumer spending’
- It is worth asking where we are on our restriction scale
- If we get more ‘months’ like the last one in terms of inflation, coupled with more weak data, you’ll have to start wondering where we should be on interest rates.
- We are optimistic that we will see improvement in inflation data
- Hopefully the Fed will get more confidence that inflation is heading back to 2%
- In the second half of last year, we had a great performance in the dual mandate… and at the beginning of this year we saw inflation rising again and we were trying to figure out… is this a sign of the temperature rising or is this just a blip?
“If we get more months, like what we just saw last month on inflation, coupled with slowing conditions in some other parts of the real economy, you have to start to wonder whether we remain as constrained as we are.” It was,” Goolsby said on CNBC.
There’s some talk that this was dovish and that’s impacting the dollar but bonds haven’t been affected so I’m not buying that. This is in line with what Goolsbee has said before extending a fairly long timeline for cuts here.