- I supported a 50 bps cut as a compromise between remaining uncertainty around inflation and risks to the labour market.
- The economy is returning to normal faster than expected so policy should as well.
- Recent data show convincingly that the US economy is on a sustainable path to price stability.
- A half-point cut at this meeting does not lock in a cadence for future rate cuts.
- Risks to the labour market have increased, with the possibility of broad weakness higher than a year ago.
- Price increases have narrowed and become concentrated in housing.
- The economy is effectively near conditions that would be considered normal.
- Businesses are becoming more careful in hiring but not considering layoffs.
- The Fed is now facing two largely balanced risks.
- Low recent levels of some recent inflation indicators portends well.
- Business leaders say pricing power has all but evaporated.
- The labour market is weakening but not weak.
- A disagreement over the level of the neutral rate is inconsequential when rates are this high.
Fed's Bostic
