The latest initial jobless claims reading and July's retail sales report quelled investor fears of a recession. PIMCO managing director and economist Tiffany...
. PIMCO managing director and economist Tiffany Wilding joins Morning Brief to discuss the state of the economy and what it signals about the Federal Reserve's next interest rate decision."You always want to be careful of 'this time is different comments,' but we've had extremely good labor supply gains over the last few years. And obviously, that's been helped by.
Um However, if we look at the underlying drivers of the recent uh unemployment rate rise, they're actually quite different than they have been historically. Well, you know, I think when, when we look at the balance of risks to the outlook, what we see has has changed more dramatically recently is the balance of risks around inflation.
And we do think growth is slowing, um, you know, growth was ha was 3% last year, very strong pace, um, above trend pace, you know, we think it's slowing and that's kind of healthy uh, this year.I think there's still, um, you know, very firm pieces of the economy, solid pieces of the economy, including uh consumers overall.
So, yes, I think the FED will start to ease back to where they think more normal levels of monetary policy should be in the long run. You know, as I mentioned, restrictive policy looks a little bit misplaced now relative to where the economy is and there's, you know, there's certainly arguments for them to get back to neutral more quickly.
Recession Fears The Federal Reserve Unemployment Rate Labor Supply Initial Jobless Claims
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed has been consistent in its inflation plan: EconomistAccording to the latest data from the CME FedWatch tool, the probability of the Federal Reserve cutting interest rates in September stands at 100%. Chicago...
Read more »
Fed is weighing much more than inflation: EconomistJune's Personal Consumption Expenditures (PCE) reading came in-line with expectations, rising 0.2% month-over-month and 2.6% year-over-year to mark the...
Read more »
Mortgage rates reflecting forecasts for Fed cuts: EconomistMortgage rates have risen slightly over the last week as the average rate on the 30-year fixed mortgage ticked up to 6.78% Zillow Home Loans senior economist...
Read more »
Labor market 'complicating Fed's goal': Economist explainsIf the Federal Reserve cuts interest rates in September, what kind of immediate impacts will this have on the US economy and the labor market? The US Bureau ...
Read more »
Fed doesn't want a cut to look like 'panicking': EconomistThe Federal Reserve held rates steady last Wednesday, but amid a weakening labor market, investors speculate the Fed may be late in implementing rate cuts...
Read more »
Fed seen rejecting calls for jumbo rate cut in economist surveyA large majority of economists surveyed see only a quarter-point decrease in interest rates coming in September — a finding that’s at odds with calls from some large Wall Street banks for a jumbo cut at the next meeting.
Read more »