- Says he hears from an increasing number of businesses who say they can no longer delay responding through changes via prices or employment
- Fed needs to be more certain about the outlook to be comfortable with how policy should shift
- US economy is going to see a slowdown in activity but how it plays out is hard to say
- Businesses say demand still strong enough to justify current workforce, though they are developing contingency
- There is a lot unknown about how customers would respond to another round of inflation; could be more price-sensitive now
- US tariff level is still high enough that it is difficult to assess what will happen
- Further instability in Treasury market would add to uncertainty
‘instability’ is a code word here for ‘higher yields’ with US 30s flirting with 5%.
This article was written by Adam Button at www.forexlive.com.
