Two Federal Reserve (Fed) officials were in the news on Friday Atlanta Fed President Raphael Bostic and Dallas Fed President Lorie Logan repeating common themes about inflation and the Fed’s rate outlook.
Both Fed policymakers emphasized that the Fed has made significant progress in reigning in U.S. inflation, but reiterated that much work still needs to be done, with key risk factors weighing on the Fed’s ability to cut rates as quickly or as deeply as markets desire. for.
- Inflation has been too high for too long, and it’s still a ways off.
- The US is on the way to pre-pandemic economic activity, it must avoid a resurgence of inflation.
- The data suggest that solid real wage gains will continue for some time to come.
- The Fed must be “decisive” and “stay the course.”
- The reduction of the Fed’s balance sheet has been very smooth so far.
- The US federal debt is on an unsustainable path.
- The American economy is in a good place right now.
- The inflation outlook appears to be persistent.
- The labor market remains tight, but there has been some easing.
- Some industries are still seeing supply chain issues.
- He sees no urgency to cut rates.