We need to see how long to leave rates where they areInflation is coming down. It’s bumpy and slowNo urgency to adjust Fed funds rateWe are making progress
There isn’t much of a signal in these comments.
There is a real risk of cutting rates too soonIf we lock inflation at this level, it’s a ‘toxic tax’We want to fully bring inflation back to 2%Economy is improving, there is a path where interest rates start to adjust this year, just not there yetThree cuts is a reasonable baseline this yearProjection of 3 rate cuts is not a promise
This article was written by Adam Button at www.forexlive.com.