- My baseline outlook is economy grows at or above 2%
- Financial conditions are accommodative, there is deregulation and fiscal tailwinds
- Half of excess inflation comes from tariffs, this will fade as the year progresses
- Job market is vulnerable to an increase in layoffs
- Inflation could stay higher for longer but that’s not my baseline
- Policy is balancing appropriately
- Policy is now neutral
- Bringing down inflation to target will help with consumption and growth and could lower 10-year rate
- It’s important to finish the job on inflation
It sounds like he is willing to cut later in the year but will need to see inflation drop.
This article was written by Adam Button at investinglive.com.
