"Fed Chair Jerome Powell struck a more dovish tone on monetary policy, yesterday reassuring investors that the central bank remains attentive to both inflation and a softening labor market. Speaking in Philadelphia, Powell noted slowing payroll gains and rising employment risks but said longer-term inflation expectations remain anchored near the Fed's 2% goal-remarks that lifted odds of another rate cut this month to 96%."
"At a meeting of the National Association for Business Economics, in Philadelphia, yesterday afternoon the Fed chairman said that in the absence of government data, federal reserve bank and private data is being used to monitor the economy. The result is a familiar one-the outlook for both inflation and employment is relatively unchanged compared to when the Federal Open Market Committee (FOMC) met last month."
The Fed chair struck a more dovish tone and reassured investors that the central bank remains attentive to inflation and a softening labor market. He noted slowing payroll gains and rising employment risks, while longer-term inflation expectations stayed anchored near the Fed's 2% goal, lifting odds of another rate cut this month to 96%. Fed monitoring now uses regional Fed and private data in the absence of government data. The Fed's outlook for inflation and employment is relatively unchanged since the prior FOMC meeting. Concerns persist that inflation control and employment stability may require opposing policy directions. Trade tensions with China over soybean purchases and threats of new restrictions have increased market volatility.
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