- Policy is in a good place
- Rate cut so far has supported labor market, keeps downward pressure on inflation
- Slow wage growth shows it's a negative demand shock in labor market
- Don't want to make the mistake of holding on to rates too long
- If we unpack inflation data, don't see inflation rising in services, housing or inflation expectations
- Asset valuations reflect higher productivity expectations, whether AI ends up to be transformative or not
The way she speaks about inflation, asset valuations and the labor market is rich coming from a Fed President who completely missed the last round of runaway inflation. Have some humility.
