Live Markets, Charts & Financial News

Feds Barkin: I'm hearing consumers slowing down, but not falling off the table

0 25
  • Revised consumer spending data is more consistent with what I am hearing on the ground
  • I’m hearing consumers slowing down, but not falling off the table
  • Skeptical that price setters at this point have gone back to where they were pre-Covid
  • 5.2% GDP tells companies that they can still try to raise prices
  • The goods inflation has clearly come down. Then that of that is basically back to pre–Covid levels
  • While I think that entry rates have clearly come down, but housing inflation is still going up
  • A lot of services prices are still going up driven by wages
  • I am still in the “looking to be convinced category” that inflation is coming down
  • Not willing to take another rate hike off the table.
  • Want the option of doing more on rates if inflation flairs again.
  • Markets have a different forecast than me on inflation
  • I believe inflation will be stubborn then we’d like
  • Talking about rate cuts is premature
  • We do hope the messages we send go into the financial conditions in the markets.
  • Try not to get overly focused on the financial conditions in the markets.
  • Market bets on 4 rate cuts next year might be based on expectations for soft landing. I hope they are right.

Barkins comments are a bit more cautious on inflation and therefore cautious on the right path. Not convinced that no more rate hikes are needed.

This article was written by Greg Michalowski at www.forexlive.com.

Leave A Reply

Your email address will not be published.