Fed's Daly: Policy is in a good place and we are prepared to respond either way
From the original
Forward guidance is not good at this juncture On rate path, we don't know how the economy will play out Hard to say the labor market has firmed This comments strike me as disingenuous. The jobs market has certainly firmed in the last 3-4 months and the data has consistently point
Related speeches
4 itemsFed's Barkin: Current policy is in a good place to respond to ongoing shocks
Fed's Daly: In the US, there's exceedingly strong investment growth
Fed policymaker Miran: I think it is appropriate to cut interest rates
The desk interprets recent comments from Fed policymaker Miran as indicative of a growing faction within the Fed advocating for interest rate cuts, despite broader concerns about inflation. Per the full note [source], Miran's call for reduced forward guidance suggests a desire for more flexible monetary policy, which he argues is necessary to support the labor market. However, the desk emphasizes that Miran's views may not reflect the majority opinion at the Fed, particularly given the ongoing geopolitical tensions that could pressure inflation. As such, the current consensus remains cautious, with upcoming economic data likely to influence the Fed's decision-making process.