US Equities (^GSPC, ^DJI, ^IXIC) are trading higher on Thursday as the market reacts to the Federal Reserve’s updated Summary of Economic Projections. The data showed nine members believe three rate cuts will occur by the year’s end. Chair Jerome Powell also claimed the Fed is seeking to slow the shrinking of its $7.5 trillion balance sheet.
Former Federal Reserve Bank of Kansas City CEO and President Esther George joins Yahoo Finance to discuss the economic backdrop for the Fed and give insight into how the Fed may shape its policy decisions moving forward.
In terms of what the Fed will be looking for moving forward, George states: “We have seen the goods part of inflation, those things that we buy and set up at our homes, coming down. Housing has proven to be a little stickier than originally thought, and of course services inflation continues to be quite strong. So I think for the Fed, being able to look broadly at those inflation measures and see that it’s coming down in general. Right now, it looks pretty uneven in terms of where the disinflation is coming. I suspect that’s one of the things they’ll want to see is this services inflation beginning to cool more.”
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Just terrible arrogant double talk bullshit.