It’s very clear that inflation has come way down in 12-18 monthsThis is about as fast as inflation has ever fallenInflation path isn’t done but it makes me feel a lot better to see components decline, including housing The labor market has been cooling to a position of better balanceSo far this doesn’t look like a recession in the labor market but there are warning lightsWe want to be stable at full employmentIf you saw a sharp of an uptick in unemployment, you would be justified to be agitated about the unemployment level. Thus far it doesn’t look like that.Unemployment needs to steady
The market is fully priced for a September cut and is priced for 64 bps in easing this year.
This article was written by Adam Button at www.forexlive.com.
