San Francisco Federal Reserve Bank President Mary C. Daly acknowledged improved inflation figures Thursday but warned that housing and labor market inflation remain sticking points and that expectations of three rate cuts may be an overreaction.
Key points
The economy appears to be on a path where one or two rate cuts this year would be more or less the appropriate path.
My expectation is that inflation will gradually decline, the labor market is gradually slowing down.
Recent inflation figures are a relief, but progress is uneven.
Some policy adjustments are likely warranted.
The labor market has softened but remains solid.
We are at the point where a further slowdown in the labor market is most likely to result in rising unemployment.
The decline in core inflation excluding housing is welcome.
House prices are falling, but a lack of supply means the process is slower than it has historically been.
It’s a pretty big signal from the Fed that so many of us are talking about the labor market.
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.
