Introduces Gary Stern and notes Boston Fed President Collins' cautious tone on rate cuts
Host
Gary Stern
Agrees with slowing down rate cuts, sees no compelling rationale to lower rates right away
Gary Stern
Surprised if data changes trajectory in next 1-3 months
Questions why hold rates now if appropriate to cut in November, given only weaker-than-expected inflation data since
Host
Gary Stern
Didn't find inflation report particularly weak; November decision was close call with dissents on both sides
Points to bearish Beige Book and layoff data suggesting labor market weakening
Host
Gary Stern
Not fully convinced labor market weakening; emphasizes dynamic nature of labor market
Asks about BofA report predicting price pressures increasing as corporates pass through costs
Host
Gary Stern
On board with price pressure increases; positive early holiday expectations and consumer credit quality