Fed's Jefferson: Expect disinflation to resume next year

  • Comments from the Fed Vice Chair
Jefferson
  • Recent cut moved policy closer to neutral while maintaining a balanced approach
  • Decline in net immigration a major factor preventing a more significant rise in unemployment
  • Trends across several data series suggest job market softening

This is certainly more-dovish than Logan who just spoke, particularly the headline comment. The market is pricing in 104 bps of easing in the next 12 months.

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