- Recent indicators suggest economy still growing at a solid pace
- Consumer spending remains solid
- GDP has slowed but private domestic final purchases still growing at same pace as H2 2023
- Labor market has come into better balance but April and May jobs data still strong
- Unemployment rate ticked up but remains low
- A broad set of indicators suggest we've returned to where jobs market as on the eve of the pandemic, relatively tight but not overheated
- Inflation has eased notably
- More-recent readings on inflation have eased somewhat
Reactions to these headlines have been nearly nil, so far.
- Repeats that Fed will need greater confidence in inflation to cut rates, though most-recent numbers have showed modest further progress
- Will need to see more good data to bolster confidence on inflation
There was a bit of USD buying on this.
- Policy is well positioned
- We will continue to make decisions meeting by meeting
