That pretty much seals it, but it was 95% priced in anyway.
From the Fed Governor (and candidate to be the next chair):
- Rate cuts beyond October will depend on data
- If job market continues to weaken, Fed should cut towards neutral
- Neutral is about 100-125 bps below current rate
- Labor market sending 'clear warnings' the Fed should be ready to act
- Main focus now is on the state of the labor market
- Sees slower path of cuts if GDP holds up or the jobs market speeds up
- Tariffs having a modest impact on inflation, inflation on track for 2%
- No-hire, no-fire jobs market is 'ominous'
- Sees conflict between strong economic growth and weakening jobs market
I think it's ominous for a lot of reasons but the main one is that companies will find out they don't need as many employees with AI, and then robotics will be like a nuclear bomb.
“You don’t want to make a mistake, so the way to avoid that is to go cautiously or carefully and do 25, wait and see what happens, and then you can get a better idea of what to do,” Waller said Thursday during an interview on Bloomberg Television.
