... been a highly data-dependent Fed needs to also apply a forward-looking, strategic judgment—something it has been reluctant to do since its major (“transitory” inflation) policy mistake in 2021.
www.federalreserve.gov/monetarypoli...
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...it suggests that both supply and demand factors, and not just the latter, are driving the weaker jobs picture.
Bottom line: The backward-looking numbers that this Fed has been using and citing as its main policy influencer do not give a green light for more rate cuts. Instead, what has...
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...a softening labor market that could justify further rate cuts.
On the other hand, the Beige Book complicates the policy conclusions in two ways
First, it reports that input costs are rising at a faster pace than before in many districts, even as consumer prices continue to climb.
Second...
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