Not much of a question. They cut 25 and make clear they will progress slowly. They need Treasury yields to stay low to pull down mortgage rates to rekindle housing, but, like Goldilocks, they don't want things to turn too hot.
If you read beyond the headline I wrote - which does not begin to describe what he is saying (I may repost with a new headline because many people don’t read or listen beyond that — BTW did you listen to the interview?) you will see a much more nuanced view. Powell has said they must get to 2%. So, what if inflation is at 2.5%? Do they keep going? What if jobs bounce back and unemployment edges down a bit in the next jobs report? Charlie thinks rate cuts are warranted. Also that they will cut in September. But 25? 50? Until He says Powell must provides clear communication on the FOMC’s strategy for what when where how they are going to cut rates at the Sept meeting.
Not much of a question. They cut 25 and make clear they will progress slowly. They need Treasury yields to stay low to pull down mortgage rates to rekindle housing, but, like Goldilocks, they don't want things to turn too hot.
If you read beyond the headline I wrote - which does not begin to describe what he is saying (I may repost with a new headline because many people don’t read or listen beyond that — BTW did you listen to the interview?) you will see a much more nuanced view. Powell has said they must get to 2%. So, what if inflation is at 2.5%? Do they keep going? What if jobs bounce back and unemployment edges down a bit in the next jobs report? Charlie thinks rate cuts are warranted. Also that they will cut in September. But 25? 50? Until He says Powell must provides clear communication on the FOMC’s strategy for what when where how they are going to cut rates at the Sept meeting.