Part 2/7:
The conversation opened with a reflection on the latest CPI numbers. The former Vice Chairman emphasized that the Fed is primarily focused on identifying broader trends rather than reacting to isolated data points. Despite the complexities of inflation rates, he highlighted the strength of the economy and the labor market as critical factors that the Fed must keep in mind. He noted that current inflation rates are moving towards the targeted 2%, albeit at a slow pace.
He suggested that the Fed's approach at the upcoming meeting should be to maintain the status quo, waiting for more data to gain a clearer understanding before making any policy changes. His stance indicated a belief that there should be no immediate expectations for rate cuts or hikes until further information is available.