Fed rate cuts look viable as inflation cools and job market stabilizes
The war on inflation is mostly won. The job market is finally slowing down. And earlier Fed hikes are still rippling through the economy and set to do unnecessary economic damage if not reversed soon.
Why it matters: That, in three sentences, makes the case for a Fed policy pivot, which may lead to rate cuts in the early months of 2024.
Notably, it is not the stated view of chair Jerome Powell and other top leaders of the central bank. Just Friday, Powell poured cold water on the idea....