Comments from JPMorgan economist Michael Feroli in a client note following Boston Fed President Eric Rosengren speech Tuesday:
- Rosengren's comments suggest the FOMC can still vote for a September liftoff if there's "strong communications" on a gradual path for subsequent increases
- Says Rosengren indicated policy may flexibly respond to inflation undershoot by proceeding gradually after liftoff
Says Feroli:
- "there may be a way forward: a September liftoff coupled with dovish communications regarding the path"
- "Dots" could signal a lower terminal funds rate and indicate the Federal Reserve is "one-and-done for this year"
(Note - JPM still sees September as most likely time for liftoff)
