Fed's Mester: It will take longer to gain confidence inflation moving towards 2%

Monetary policy is well positioned as the Fed reviews more dataRisks to inflation side of the mandate have increasedDownside risks to growth and hiring have fallenExpects gradual progress on lowering inflationLabor market conditions are strongCurrent policy will lower inflationWelcomes the latest CPI data as a sign of cooling inflationThese are by-the-book comments as the Fed continues to push the narrative of higher-for-longer rates. But the market is trying to get ahead of them, sensing some weakening of the economy and a potential pivot to cuts. This article was written by Adam Button at www.forexlive.com.

May 16, 2024 - 22:45
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Fed's Mester: It will take longer to gain confidence inflation moving towards 2%
  • Monetary policy is well positioned as the Fed reviews more data
  • Risks to inflation side of the mandate have increased
  • Downside risks to growth and hiring have fallen
  • Expects gradual progress on lowering inflation
  • Labor market conditions are strong
  • Current policy will lower inflation
  • Welcomes the latest CPI data as a sign of cooling inflation

These are by-the-book comments as the Fed continues to push the narrative of higher-for-longer rates. But the market is trying to get ahead of them, sensing some weakening of the economy and a potential pivot to cuts.

This article was written by Adam Button at www.forexlive.com.
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