Labor market continues to loosen, come into better balanceUnemployment rate is up but still historically lowWage gains remain above pace consistent with our goalShould incoming data show inflation is moving sustainably toward target, it will become appropriate to gradually lower rates to avoid becoming overly restrictiveWill remain cautious in my approach to any change in policy stanceStill see the need to pay close attention to the price-stability side of our mandate while watching for risk of a material weakening in the labor marketStill sees upside risks to inflationWe need to be patient and avoid undermining continued progress on lowering inflation by overreacting
She isn’t giving much away here but that’s no surprise as she’s a hawk. Nevertheless, I find it hard to envision a world where she is supporting a 50 bps cut in September.
This article was written by Adam Button at www.forexlive.com.
