- Sees progress on inflation and labor market cooling since mid-2023
- Believes smaller initial move preferable to avoid premature victory declaration
- I see the risk that the Committee's larger policy action could be interpreted as a premature declaration of victory on our price stability mandate
- Although hiring appears to have softened, layoffs remain low
- Consumer spending reflects a healthy economy
- US economy remains strong with solid growth and near full employment
- Labor market normalizing but measurement challenges create uncertainty
- Inflation still above 2% target, core PCE above 2.5% y/y
- Argues for measured pace toward neutral policy to ensure further inflation progress
- Committed to working with FOMC colleagues despite disagreement on cut size
It's normal for dissenters to publish essays or statements to explain themselves. Hers was the first dissent by a Fed Governor since 2005 but isn't particularly impactful in terms of policy. She is going to support 'moving at a measured pace' towards neutral going forward.