Feds Barkin on Bloomberg says:
Data shows economy on same trajectory as last year or twoLow unemployment and inflation moving towards target.Will have to see how consumers react to price changes.Seeing lots of hiring freezes.Businesses are still largely pulling to the sidelines.People are patient on investment, does not see a case for businesses to cancel investment plans.Thinks business sentiment is a very good indicatorGovernment spending cuts are having an impact on employment, job positions particular in the DC areaConsumer spending has historically correlated with consumer sentiment, but it has been questioned over the last couple years.Does not see in real-time data that spending is dropping.Consumers are anticipating inflation and that has hit sentiment, no evidence yet that has translated into less spending.Sees impact on inflation and employment from Trump policies is balanceThere is two types of reaction to Trump tariffs. One, is front loading inventory build up. The other is to pull back on importsWaiting to see what happensBarkin’s comments reflect a cautious neutrality—the economy appears stable, with low unemployment and inflation gradually moving toward target, but signs of business hesitation (e.g., hiring freezes and delayed investments) and consumer wariness are emerging. While he doesn’t see immediate drops in spending or business cancellations, he acknowledges uncertainty around consumer reactions, tariff impacts, and government spending cuts, particularly in sensitive regions like D.C.
Bias: Neutral to slightly cautious, with more focus on risks than the upside potential. This is congruent with most commentary from Fed officials.
Meanwhile fiscal policy is switching from tightening to easing. Today is a day to focus on stimulus as the market reacts to the reprieve from the 50% tariffs "recommended" by Trump on Friday.
This article was written by Greg Michalowski at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( Feds Barkin: Data shows economy on same trajectory as last year or two )
Also on site :