- Monetary policy continues to be in a position to put downward pressure on inflation
- Fed has a balancing act, underlying inflation moderating
- I see very little uncertainty int eh transition to new directors at the central bank
- Fed has seen resilient labor market that's gradually softening
- Doesn't want to see labor market softening go too far
- Inflation expectations are somewhat high but long term expectations are anchored
- Some upside inflation risks have ebbed, it made sense to cut rates
- My model estimate for real neutral rate is 0.75%
This sounds like he's open to cutting further. As for that neutral rate comment, you would add inflation to it so 2.75%.
