On YoY basis, unit labor cost grew 1.8% below Fed target. We can declare one of major inflation indicator is below Fed target now. That's why Fed reduced QT and is relatively dovish. In the third quarter, Fed will start cuting rates. They will declare inflation win.
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With inflation cooling and signs that the economy and job market are slowing down, there's increasing buzz about the Fed possibly cutting interest rates soon. Everyone's pretty much expecting a rate cut at the Fed's next meeting on September 18, but upcoming reports will be crucial. Keep an eye on the Personal Consumption Expenditures update on August 30 and the Consumer Price Index on September 11—these will be key for the Fed's decision-making! #EconomyWatch #interestrates #dfwhomes #dallashomes
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The Fed economic projections (SEP) from the June meeting projected a core PCE (#fed preferred #inflation measure) at 2.8%, then recent core #pce data came at 2.6% Today the #unemployment rate came at 4.1% the Fed projection for end of 2024 is at 4% Remember that #powell said in his press conference that we have two tests one on inflation and the other one on unemployment , what I mentioned above are the first two data points where the Fed projections are crossed, as a result Odds for #interest #rate cuts are increasing and we need to keep watching data and the shape of the #yield curve
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Softening inflation and signs of the labor market slowing sent interest rates lower during the month. Market leadership shifted during the month as all eyes remain on the Fed and the possibility of a September rate cut, and REITs had a favorable month. Read our Recap: https://lnkd.in/ehsjQKtf
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📢 The Fed finds itself in a metaphorical tug-of-war between inflation and rate cuts. Inflation rises to 3.4%, overshooting the Fed's 2% target. Will the Fed bend to the demands of inflation or hold strong with rate cuts? 🤔💪 Read more: [Link] #Fed #Inflation #RateCuts #Economy #TugOfWar #blog https://lnkd.in/gcPKTsGD
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U.S. #inflation numbers “cooled” to 3.4% annualized in May. There are cheers for this because it’s gives the US Fed more reason to begin cutting #interestrates . Don’t forget: it still means prices are higher this year than they were last year, and the Fed wants next year’s prices to be higher than this year’s (but only by 2.5% so it’s “not such a burden”). Will your income and investment accounts rise by as much?
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The expectations surrounding the Fed's anticipated rate cuts were challenged by recent economic growth, employment and inflation data. The charts below illustrate trends in inflation, and how many rate cuts are being priced in. Feel free to reach out with any questions. https://lnkd.in/eKNJ97tY
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The expectations surrounding the Fed's anticipated rate cuts were challenged by recent economic growth, employment and inflation data. The charts below illustrate trends in inflation, and how many rate cuts are being priced in. Feel free to reach out with any questions. https://lnkd.in/gAyAwCgz
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US Fed - Made room to cut rates later if labor market weakens - Made room to not cut rates if inflation persists In effect, the Fed is now in a wait and watch mode.
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Market assesses probability of Fed rate cut in June at around 60% (blue line). Even if new inflation and labor market data disappoint, Fed won't postpone beyond July. #Fed #interestrates #inflation #jobmarket #cme
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6moCar Insurance may get in the way of calling it a win. So does the lapping shelter inflation