Inflation is much closer to 2% goalThe labor market is not a source of significant inflation pressuresTotal PCE prices likely rose 2.5% in 12 months ending in Dec, with core up 2.8%Inflation expectations remain well anchoredConsumer spending has been resilientInvestment in equipment has strengthenedWe are attentive to risks on both sides of the mandateWe are not on any pre-set courseMedian projections are somewhat higher, consistent with higher inflation forecastsIf inflation is stronger we can dial back policy more slowly
There is no hint about a pause or hiking in the bolded line. It’s either ‘cut fast’ or ‘cut slow’.
Can ease more quickly if labor market weakens unexpectedly or inflation falls more quickly
There weren’t any big signals in the opening statement.
This article was written by Adam Button at www.forexlive.com.
