- We still have some work to do on inflation
- We have solid growth, solid labor market.
- What's bothersome still is we haven't achieved price stability.
- Focus is on inflation, other things don't distract us.
- Policy, economy is in a good place.
- Rates have been restrictive for a significant number of years.
- June CPI showed some of the effects of tariffs..
- Other parts of inflation or coming down.
- The want to lower rates preemptively
- Two rate cuts this year is a reasonable outlook
- Businesses are optimistic.
- Businesses not stalling out
- Don't need to slow growth precipitously to get last mile on inflation.
- Wouldn't want to see more weakness in the labor market.
- Fed policymakers to share people responsibility on setting up US interest rates
- On the possibility of a July rate cut, she answers that's the wrong question
- the question is the direction of travel, which is rates will be cut consistent with falling inflation.
- Whether rate cut happens in July or September is most relevant.
- Where rates eventually settled will be 3% or higher.
- That rate is higher than neutral pre-pandemic.
- Not surprised that there is some inflation in the good sector, encouraged by disinflation in other sectors.
- Rates are modestly or moderately or a little restrictive
- in bond market as a volatility rather than a significant change in how investors are pricing the things.
- If financial positions got over loose, we'd have to take that into account but don't see that happening.
- Financial conditions are slightly restrictive to growth
Given the inflation concerns and it being the middle of July, seeing two rate cuts puts her in a Trump friendly member - relatively to some of the others who are more quiet about number of cuts. Having said that she is not in the "rates should be 1%".
