The Fedspeak is quiet today, but former Cleveland Fed President Loretta Mester is on CNBC (she is newly retired from the Fed)
Jobs work is going to be an important piece of the puzzleThere will be a discussion on whether they want to start with a 25 or 50 basis point cutWhat is the path on cuts going forwardJobs market has been moderated from a quite tight conditionPowell said from Jackson Hole would not want to go much weaker than the where they are nowThe Fed wants a strong labor market. Having a strong jobs report is a good thing for the committee.Inflation has come down and it’s time to start to bring the policy right down.The Fed does look at financial conditions and part of that is what goes on in the equity market, but it is just a piece of the financial conditions.Politics does not enter the roomThe Fed is focused on the dual mandatesThe Fed will be criticized either way on what they do. They have to be focused on their mandate.
This article was written by Greg Michalowski at www.forexlive.com.
