- The jobs report was a tough mess.
- It is just one month but it was not a good month.
- If we get several months like this data, it would be of concern.
- It is hopeful that we see continued progress on inflation.
- Hopeful that we can resume the rate cuts by the end of the year.
- Question is whether inflation rates will be temporary or is it long haul .
- Oil price shocks can lead to stagflationary direction. Stagflation is worst case scenario for banks.
- Reasons we are seeing low hiring, low firing is uncertainty.
- Remains hopeful we will see progress on inflation
- Non-tariff inflation has been disturbingly high
- Disturbing persistance of services inflation
- Wants to get as much information as possible, especially given recent conflicting data
- Everything is on the table at every meeting.
- Strong consumer has been driving US growth.
Policy tone: Slightly dovish / cautious
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Open to resuming rate cuts later this year if inflation continues to improve.
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Concerned about labor market softness and economic uncertainty.
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However, still wary of persistent services inflation and oil-driven inflation risks.
This article was written by Greg Michalowski at investinglive.com.
