Fed's Cook is on the wires saying:
I believe that a soft landing is possible
Risks are two-sided, must balance risk of not tightening policy enough against risk of doing too much
There’s a risk that continued demand momentum could slow pace of disinflation
Small business conditions, housing sector. Lower-income households may be signaling loader stress ahead
Also attentive to risk of renewed global economic shocks, including geopolitical and muted growth in China, Europe
Fed policies have spillovers abroad
Concurrent global central bank tightening may mean each central bank need do a bit
Supply chain improvements, drop in commodity prices has also helped inflation's fall
Increased multifamily housing supply will contribute to the expected further reduction in inflation
Labor supply, demand coming into better balance
Lisa Cook is a Governor on the Federal Open Market Committee and as such as a permanent vote for policy..
The last tightening has been priced out of the market for 2023 after the CPI. The focus is now on rate cut probabilities. March has a 35% probability of a cut, while May is up to 68%.
