Wage growth pulling back to level more conducive to price stabilityBusiness contacts point to a loosening but still broadly stably labor marketLabor market conditions to weaken, but not weakAm now giving equal attention to maximum employment objective as inflationFed must stay vigilant to ensure inflation risks continue to waneAm not quite prepared to declare victory over inflation as risks remainPrice pressures are diminishing quickly and broadlyNo panic among my business contacts but describe an economy and labor market losing momentumMost recent inflation reports bolster my confidence inflation likely on sustainable path to 2% Soft landing for economy may be within reachFed is in a generally favorable positionWe must not maintain a restrictive policy stance for too long
Bostic has been hawkish but there is a dovish shift here, though I don’t see any sign of a rush to cut by 50 bps.
This article was written by Adam Button at www.forexlive.com.
