Fed's Kashkari: We won't declare mission accomplished on inflation

We won't declare mission accomplished on inflation.The labour market is strong, want to keep it that way.Fed policy is still in a net tight position.An uptick in unemployment is a bigger risk than inflation.There is lots of ambiguity around what the neutral rate level is.I expect smaller steps going forward for the Fed.A 50 bps rate cut was a meaningful step to get the process moving.The FOMC meeting had active deliberations over Fed rate cut.A 25 or 50 bps rate cut, both would have been reasonable.The election is not a factor in Fed rate decision.There's lots of uncertainty abour where the Fed will cut to.I would love to get back to 3.5% unemployment rate.The labour market has not been driving inflation.Job market a lousy forecaster of inflation.Penciled in 50 basis points more cuts in 2024. This article was written by Giuseppe Dellamotta at www.forexlive.com.

Sep 23, 2024 - 18:20
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Fed's Kashkari: We won't declare mission accomplished on inflation
  • We won't declare mission accomplished on inflation.
  • The labour market is strong, want to keep it that way.
  • Fed policy is still in a net tight position.
  • An uptick in unemployment is a bigger risk than inflation.
  • There is lots of ambiguity around what the neutral rate level is.
  • I expect smaller steps going forward for the Fed.
  • A 50 bps rate cut was a meaningful step to get the process moving.
  • The FOMC meeting had active deliberations over Fed rate cut.
  • A 25 or 50 bps rate cut, both would have been reasonable.
  • The election is not a factor in Fed rate decision.
  • There's lots of uncertainty abour where the Fed will cut to.
  • I would love to get back to 3.5% unemployment rate.
  • The labour market has not been driving inflation.
  • Job market a lousy forecaster of inflation.
  • Penciled in 50 basis points more cuts in 2024.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
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