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FED: FOMC Members Muse Hawkishly On Neutral And Long-End Rates (2/3)

FED

Comments at the start of the week from hawkish-leaning members didn't appear to call a December rate cut into question.

Richmond Fed Pres Barkin (who will vote at the final 2024 meeting in December but won't vote in 2025) didn't reveal much on monetary policy preferences in a speech Monday, summing up by saying policy is in "a good place". Then on Tuesday, the eve of the October CPI report, Minneapolis Fed President Kashkari (non-voter 2024/25) suggested that it could take significant upside inflation surprises in the next two months to cause the Fed to deviate from cutting rates a third consecutive time at the next meeting: “If we saw inflation surprises to the upside between now and then, that might give us pause...It’d be hard to imagine the labor market really heats up between now and December. There’s just not that much time...There’d have to be a surprise on the inflation front to change the outlook so dramatically.”

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Comments at the start of the week from hawkish-leaning members didn't appear to call a December rate cut into question.

Richmond Fed Pres Barkin (who will vote at the final 2024 meeting in December but won't vote in 2025) didn't reveal much on monetary policy preferences in a speech Monday, summing up by saying policy is in "a good place". Then on Tuesday, the eve of the October CPI report, Minneapolis Fed President Kashkari (non-voter 2024/25) suggested that it could take significant upside inflation surprises in the next two months to cause the Fed to deviate from cutting rates a third consecutive time at the next meeting: “If we saw inflation surprises to the upside between now and then, that might give us pause...It’d be hard to imagine the labor market really heats up between now and December. There’s just not that much time...There’d have to be a surprise on the inflation front to change the outlook so dramatically.”

Keep reading...Show less