📈Despite strong jobs report, the Federal Reserve is hesitant to raise interest rates in March.
💸The Fed wants to achieve its inflation target of 2% and is aiming for a soft landing.
📉The economy is slowing, and the Fed predicts three rate cuts starting in June.
💰The Fed is monitoring financial conditions and credit surprises as indicators of economic health.
📊Goods inflation has driven progress on inflation, but services inflation is still running a little hotter than target.
Why is the Federal Reserve hesitant to raise interest rates?
—The Fed wants to achieve a soft landing and reach its inflation target of 2%. Despite a strong jobs report, they believe the economy is slowing.
When does Richard Clarida predict the rate cuts to begin?
—Clarida predicts three rate cuts starting in June.
What indicators is the Fed monitoring?
—The Fed is monitoring financial conditions and credit surprises as indicators of economic health.
What has driven progress on inflation?
—Goods inflation has driven progress on inflation, but services inflation is still running a little hotter than the target.
What is the Fed's focus regarding inflation and labor market?
—The Fed wants to achieve its inflation target of 2% and welcomes a strong labor market as evidence of achieving the desired disinflation.
00:01Despite a strong jobs report and higher average hourly earnings, the Federal Reserve is hesitant to raise interest rates in March.
00:13Former Fed Vice Chair Richard Clarida predicts three rate cuts starting in June due to the slowing economy.
01:03Clarida was surprised by the statement from the Fed Chair indicating no rate hike in March.
04:00The Fed looks at financial conditions and credit surprises as indicators of a soft landing.
05:20Goods inflation has driven progress on inflation, but services inflation is still running hotter than the target.
