It seems that Federal Reserve (Fed) officials are getting a little nervous, BBH analysts say.
Inflation is not the only risk for the Fed
“Goolsbee said ‘if we have more months like we just saw last month in terms of inflation, along with slowing conditions in some of the other parts of the real economy, then we would have to start questioning, should we continue to be as restrictive as we have been?'”
“On the other hand, Daly said ‘the spotty inflation data so far this year hasn’t inspired confidence. Recent readings are more encouraging, but it’s hard to know whether we’re really on the path to sustainable price stability.”
“However, ‘so far, the labor market has adjusted slowly, and the unemployment rate has only increased slightly. A future labor market slowdown could translate into higher unemployment, as companies need to adjust not only vacancies but real jobs too. It seems that inflation is not the only risk we face.'”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
