Fed's Kugler: Signs firms are adjusting prices slower, bolstering disinflation confidence
No hint at something more hawkish here:'Cautiously optimistic' inflation will fall without job market damageFed policy actions have helped bring inflation pressures down, helped anchor inflation expectationseconomy appears to have dodged a wage-price spiralInflation pressures have cooled significantlyFed has faced less of a trade off between inflation and jobsWorkers and employers are better at finding each other nowGoods and labor shortages have declinedThere's not a hawkish word here despite the higher inflation data in January. I was worried this morning after Barkin that we could see something of a coordinated push from Fed officials to warn that rates could stay higher for longer. Instead we get this and yields have crumbled. This article was written by Adam Button at www.forexlive.com.
No hint at something more hawkish here:
- 'Cautiously optimistic' inflation will fall without job market damage
- Fed policy actions have helped bring inflation pressures down, helped anchor inflation expectations
- economy appears to have dodged a wage-price spiral
- Inflation pressures have cooled significantly
- Fed has faced less of a trade off between inflation and jobs
- Workers and employers are better at finding each other now
- Goods and labor shortages have declined
There's not a hawkish word here despite the higher inflation data in January. I was worried this morning after Barkin that we could see something of a coordinated push from Fed officials to warn that rates could stay higher for longer. Instead we get this and yields have crumbled.
This article was written by Adam Button at www.forexlive.com.
