FED member Stephen Miran gave strong messages in successive statements that the FED was shifting to a more dovish path towards the end of the year. The statements increased expectations that an interest rate cut of 25 to 50 basis points would be on the agenda, especially in December. Miran began by stating that all data received since September pointed to a rate cut. He then clarified his message by saying, “Easing monetary policy is now essential.” In his assessment of the labor market, Miran stated that the unemployment rate is rising, employment is softening, and that “full employment levels have not yet been reached.” Miran, stating that core personal consumption expenditures (PCE) inflation is moving toward the 2% target, argued that some of his colleagues were overlooking “lagged inflation effects.” Still, he noted that the latest data was “stable and on a downward trend,” suggesting that a more dovish stance compared to September was reasonable. “A 50 basis point cut would be appropriate, at least 25 basis points,” he said of the December meeting. Related News: Watch Out: Massive Token Unlocking in 20 Altcoins This Week - Here's the Day-by-Day, Hour-by-Hour List Data released by US price-tracking firm OpenBrand, which coincided with the Fed members' comments, also supported the picture. Inflation in durable goods and personal care products slowed for the first time in three months in October. According to OpenBrand, prices in this product group increased by 0.22 percent last month, well below the 0.48 percent increase in September. The organization tracks a wide range of data from online stores to physical retail locations. Price increases decreased in every category except communications equipment in October. The delay in official economic data due to the historic government shutdown has increased interest in such alternative metrics. *This is not investment advice. Continue Reading: FED Member Stephen Miran Makes Major Dovish Statements – What Will Happen to the Interest Rate Decision in December?
