No need to be in a hurry on policy rate adjustments
Current policy rate well-positioned to deal with risks, uncertainties
Could retain current policy restraint for longer, or ease policy, depending on inflation progress and job market
Policy rate is now somewhat restrictive
Labor market solid, well-balanced
Latest data shows inflation moving sideways
Longer-term inflation expectations remain consistent with 2% goal
Rise in goods inflation partly due to trade policy; drop in housing services inflation could help counter
Economy solid, but heightened uncertainty among consumers, businesses tied to trade policy
If uncertainty worsens, economic activity may be constrained
Negative sentiment often does not translate to slowdown in actual activity
Recent signs that consumer spending may be weakening
Anticipate some modest labor market softening this year
Vigilant on spillovers from federal government layoffs to other sectors
These comments are in line with ones from yesterday and last week. Are they? Will the tariffs have an impact on spending/on inflation/on growth? Most likely.
THe Fed Chair will be speaking tomorrow. What he says will be most important. See Adam's post HERE
