As Tax Day approaches, market volatility is influenced by individuals selling assets to raise funds and foreign investment outflows. This instability is expected to be temporary. Recent statements from Fed President Waller suggest a shift in focus towards labor market stability rather than inflation, advocating for quicker rate cuts if necessary. His approach indicates a more accommodative monetary policy, aiming to prevent or mitigate recession risks, particularly in the context of a slowing economy and housing market indicators.
If the tariff-induced slowdown is significant and threatens a recession, I would expect to favor cutting sooner and faster than previously thought.
Their focus seems to be shifting from merely restoring the Fed Funds rate to a neutral position to adopting a more accommodative stance.
Collection
[
|
...
]