- We need to make sure we don't overreact
- We have to narrow the demand supply imbalance. Hopeful the supply side can do some of the work
- I'd be comfortable just saying at 3.5-3.75% and just staying there and hopefully that does it
- It's premature to think about cutting
- I'm starting to use the word more 'resolute' and only let exceptional outcomes drive a move from there
- We're starting to see some positive signs, particularly on the goods side, which is coming down dramatically
- Today's PCE report makes me lean a little more towards 50 bps but lots of data to come
We heard from Bostic yesterday so there's no big surprises here. What I'll note is that -- once again -- this is a Fed official saying that they're going to hold rates for longer at higher levels. To me, that's obviously a Fed communication strategy and a preview of what Powell will say.
The US dollar dipped on PCE but has come back with market participants afraid to get caught offside by Powell.
