- There is strong case for using projection meetings to recalibrate policy stance
- High uncertainty warrants a data-dependent approach
- Disinflation process remains bumpy
- Not all the signs are green yet when it comes to core inflation
- Recent shift in market expectations shows that the road to meet inflation target is bumpy
- We can look through small deviations from target as long as we respond especially forcefully to larger deviations
In other words, he's sort of backing the idea of one or two more rate cuts for the year. As for the market pricing, traders are seeing ~40 bps of rate cuts still to come for the remainder of 2024. The odds of the next move being in September are ~55% while an October move is priced at ~94% odds currently.
