Comments from Fed vice-chair Richard Clarida:
- Fed funds now in the broad range of neutral
- The labor market is strong
- The FOMC will factor in both sides of the outlook
- Inflation is 'muted' and long-run inflation expectations at the 'low end' of range consistent with price stability
- Risks including Brexit still cloud US outlook
- US economy slowing from 'robust' pace of 2018
Clarida had the option of keeping rate hikes this year on the table but instead he's mostly emphasizing the negatives. To me that's another clear sign that it's either no change in rates or a cut in the year ahead.