- It may be appropriate in the near term to adjust policy rate
- Economy is slowing.
- Not clear the impact of tariffs on inflation.
- The economy has held up well despite the tariffs
- we have not seen the effects of the tariffs as businesses built their inventory in anticipation.
- The Fed needs to respond to the slowing economy
- We won’t know the answer to inflation for a while, meanwhile data on slowing is clear.
- I can see two rate cuts this year.
- If inflation does rise because of tariffs, the Fed could pause or even hike.
- These tariffs affects take a lot longer to be clear. If the data is a slowing, how long can we wait for the tariff effect
- It might be better to cut and then pause for reverse a cut versus sitting here and waiting.
- The unemployment number is a very important, but Fed knows provisions are possible
Since the US jobs report
This article was written by Greg Michalowski at investinglive.com.
