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Fed's Hammack (2026 voter): NFP report was disappointing however wholesome labor market.

  • NFP report was disappointing
  • Healthy labor market still in balance, but should be watched
  • confident in decision made earlier this week.
  • Fed is still seen pressure on inflation side of mandate.
  • Right now Fed missing much more on inflation side relative to jobs of mandate.
  • The pain from inflation is biting.
  • Businesses are dealing with high uncertainty.
  • Expects to see inflation tick up
  • Businesses cannot absorb the cost increases anymore and will have to increase prices.
  • Expects to see jobs market weakening into the end of the year.
  • The economy is operating around eight long-term neutral rate. Does not have far to go to get 28 neutral rate.
  • Calls policy a little restrictive.
  • Reiterates that the jobs report is just one report.
  • Before the next meeting will get another jobs report and two inflation reports. There is a lot more data to come.
  • Will go into the next meeting with an open mind.
  • Now is really tricky time for setting monetary policy.
  • Has enormous respect for Fed chair Powell.
  • Data will drive any thinking about monetary policy votes.

NASDAQ index is down -288 points

This article was written by Greg Michalowski at investinglive.com.

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