Must be mindful of both sides of the mandate right nowIf labour market sputters, appropriate to gradually reduced ratesBut if disinflation progress stalls, it could call for a pause to rate cutsThere has been ‘considerable progress’ on easing inflation pressuresBut housing and other factors may complicate things
The message right now seems to be the case that they might be open to pausing in December, or perhaps in January at least. There’s still five more weeks until the next FOMC meeting and there will be much data to scrutinise between now and then. As much as the inflation numbers yesterday were not too hot, services inflation remains relatively sticky and may pose a problem in getting the core figures lower in the months ahead.
This article was written by Justin Low at www.forexlive.com.
