More from Feds Jefferson:
- It could be the case that rise in the long-run treasury yields reflects anticipation for strong growth
- Current policy is restrictive.
- Finding the right stance of policy is my concern.
- As a policymaker unmindful cumulative effects of past rate increases has NOT been felt
- We need to do our work to bring the inflation rate down before we can assess what long-run R-star is
- Cannot say if rate cuts might be needed next year yet.
- Our objective is for balance sheet policy to work in harmony with policy rate, but it depends on what is happening in the economy
- Need to be nimble with regard to what is happening in the economy
- Employment growth is a good thing
- We just want job growth to be consistent with path of inflation toward 2%
Fed probabilities now:
- 14% in NOvember vs 16% earlier today
- Price of cut in June 2024 vs July earlier today
