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Fed On Hold, Nods To Softer Jobs Market, Inflation Progress
The Fed kept rates on hold as expected Wednesday.
Notwithstanding the exhortations of Bill Dudley and Mohamed El-Erian, there was no chance of a cut at this meeting.
Although I'm sympathetic to the self-evident notion that a Fed which wants to land the proverbial plane softly is a Fed that cuts proactively, for "insurance" purposes, not a Fed that cuts reactively, when the labor market turns, the balance of the data doesn't justify a cut quite yet.
The "Why wait?" question's a good one, thoug
Makes sense to me that the bad thing you’ve just lived through (inflation) is a stronger force than the ‘hoped for but not experienced’ soft landing. At present ‘no cuts’ is still getting results so there’s no need for booster rockets yet to keep the trend moving in the right direction.