I don’t like tying our hands for any meeting but Fed funds minus inflation is as high as it’s been in decadesInflation is on a path to 2%We’re the tightest we’ve been in this cycle, even though we stopped hiking last JulyFed forecasts show widespread support for rate cutsIt’s hard to put a specific number on where neutral isBy almost all measures the job market has been coolingThe market does not believe we’re going to be stuck at 3% or 2.5%
This article was written by Adam Button at www.forexlive.com.
