Key takeaways
- Fed member Miran signals two additional rate cuts this year
- According to the Miran, housing market will be disinflationary in coming months
- Government shutdown pressures US economy and labour market softens
Key takeaways
- Fed member Miran signals two additional rate cuts this year
- According to the Miran, housing market will be disinflationary in coming months
- Government shutdown pressures US economy and labour market softens
Chosen by the Donald Trump, Fed member Stephen Miran signals additional rate cuts needed, opening the path for at least 2 rate cuts this year. At the same moment US Secretary Bessnet signalled the possibility of longer China tariff truce. Here is the breakdown from Fed's Miran remarks.
Fed Miran
- Two more cuts this year sounds realistic. The labour market has clearly weakened.
- There is now more downside risk than a week ago
- There is difficulty in knowing the neutral rate exactly.
- It's even more urgent to get to neutral rate quickly now.
- The difference in my view and the rest of the FOMC is on the speed of the trip to neutral.
- The Fed has to think about the introduction of a new tail risk.
- US-China tension potentially important for outlook.
- With the change in the balance of risk more urgent to get to a more neutral policy
- I see substantial disinflation coming a year from now; also from housing market in coming months.
Source: xStation5
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