- The critical challenge is: not to let things get worse.
- If you look at the beige book, you can’t look at it as exciting, on the contrary, it was a bit depressing.
- Points to warning signs about the economy
- You just want the prices to be that high as long as you have to.
- We’ll get a new chart of dots, there was a consensus that inflation was falling but not as fast as it was falling.
- In the dot chart, unemployment rates were expected to rise but not as quickly.
- The most important thing is not the next meeting, but getting it right over the course of several meetings.
- Inflation is on its way to 2% and now we need to stabilize the labor market and GDP.
- Danger signs are when you see things starting to go wrong.
- The current employment rate is too low for population growth.
- I fear that the probability of recession will increase.
- We have a greater tolerance for any upside surprise in the CPI as the longer arc shows lower inflation.
These comments on the dot chart came after a question about more aggressive monetary easing. So between the lines there was an argument for 50 basis points. At the same point, he confirmed that deeper cuts were also in question for future meetings.
The Fed funds futures rate fell 50 basis points to 25%.
This article was written by Adam Bouton on www.forexlive.com.
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