Comfortable with 50 bps, shows fed is focused on risks around employment, not just inflationInflation is way down from peak, labor market is at full employmentKeeping rates at decade-high does not make sense when you want things to stay where they areTo reach a soft landing you can’t be behind the curveRates must come down significantlyGolden path is in the books, inflation came down without a recession last yearBusinesses say they see “steady as she goes” with surprisingly little discussion about inflationMonitoring office building vacancy rates, making sure banks provisions for any losses on commercial real estate
Fed officials have this vision in their mind of executive a perfect soft landing. That’s a dangerous game.
This article was written by Adam Button at www.forexlive.com.
