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Jefferson Q&A: Household balnce sheets will normalize and drive less consumption
Comments from the Fed's Jefferson • Household balance sheets have weakened, over time they will normalize and be less of a factor in driving consumption • Labor market seems to be rebalancing in a way that is allowing lower inflation without unemployment • Recent rise in productivity suggests supply side healing form the pandemic • Perhaps potential GDP growth has risen • Will be looking at the totality of data in making rate cut call, wants to see evidence that inflation is 'sustainably' headed to target.
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Fed’s Jefferson: Not Looking At One Particular Indicator; Need A Body Of Evidence That Would Weigh In The Direction Of A Rate Cut
— LiveSquawk (@LiveSquawk) February 22, 2024
- Fed Wants To Move In A Way That Would Not Lead To Stops And Starts In Policy And Increase Policy Uncertainty