SUMMARY OF FED CHAIR POWELL'S COMMENTS (7/2/24):
1. The trend of disinflation appears to be resuming
2. Need to be more confident before reducing rates
3. Fed doesn't see 2% inflation "this year or next year"
4. Budget deficit is very large and unsustainable
5. 4% unemployment is still a very low unemployment rate 6. Moving too fast creates risk of inflation returning
The Fed needs more data before rate cuts can begin.
Source: The Kobeissi Letter