Sees progress on inflation and labor market cooling since mid-2023Believes smaller initial move preferable to avoid premature victory declaration I see the risk that the Committee’s larger policy action could be
interpreted as a premature declaration of victory on our price stability
mandate Although hiring appears to have softened, layoffs remain lowConsumer spending reflects a healthy economyUS economy remains strong with solid growth and near full employmentLabor market normalizing but measurement challenges create uncertaintyInflation still above 2% target, core PCE above 2.5% y/yArgues for measured pace toward neutral policy to ensure further inflation progressCommitted to working with FOMC colleagues despite disagreement on cut size
It’s normal for dissenters to publish essays or statements to explain themselves. Hers was the first dissent by a Fed Governor since 2005 but isn’t particularly impactful in terms of policy. She is going to support ‘moving at a measured pace’ towards neutral going forward.
This article was written by Adam Button at www.forexlive.com.
