Fed's George: Encouraging to see inflation coming down

• Encourging to see inflation coming down
• Fed has to be a little more patietn in assesing if inflation on sustainable path
• We continue to see service sector inflation
• Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term sector pressures set to continue
• I need to see progress on that to have more confidence
• We are in a good place today
• Fed facing a very tight labor market
• ON supply side from the labor market, there are some binding constraints that make it difficult for inflation to come down in a convincing manner
• Need to see job opening come down
• Still a lot of money on household balance sheets

Fed's George is not a voting member and is set to retire shortly.

Last night NY Fed Pres. Williams said:

• Inflation is still to high
• The Fed still has more work to do to bring inflation down to their goal of 2%
• Job growth remains strong
• He expects growth to be moderate in 2023
• He is not changing his view on rate forecast. WIll be based on data

Meanwhile, while the Fed forecasts 5.13% for the terminal rate, the market forecasts the Fed cutting to 4.43% by year end. That is a 71 basis point difference between the Fed target and what the market is currently pricing in.

Later today Fed's Chris Waller will be speaking at 1 PM. He is probably the last Fed official to speak before the blackout period before the February 1 meeting. Waller is thought to be more of a hawk. Hence his comments will be monitored for a easing of those views.