It's time for the Fed to cut rates at the end of July.
Add to that the moderation in the consumer price index , the producer price index and the personal consumption expenditures price index – the Fed's preferred inflation gauge – and the need to wait for further signs of improvement seems like overkill.
Also, if the Fed dials back policy later – rather than sooner – there will be claims of political interference if it cut rates immediately before the presidential election.
The central bank has been dealing with an economy-crashing pandemic, a surge in prices and uncertainty over how its policies would affect the broad economy, inflation and consumer behavior over time.
This is a factor that will likely drive inflation rates lower.
Persons:
Adrian –, –, Mickey, Dow Jones, Joe Biden, Adrian . Go, Ron Insana
Organizations:
Federal Reserve, Fed, Dow, New York Federal, Atlanta, CNBC