More from Fed's Jefferson: Current policy is restrictive

<p>More from Feds Jefferson:</p><ul><li>It could be the case that rise in the long-run treasury yields reflects anticipation for strong growth</li><li>Current policy is restrictive.</li><li>Finding the right stance of policy is my concern.</li><li>As a policymaker unmindful cumulative effects of past rate increases has NOT been felt</li><li>We need to do our work to bring the inflation rate down before we can assess what long-run R-star is</li><li>Cannot say if rate cuts might be needed next year yet.</li><li>Our objective is for balance sheet policy to work in harmony with policy rate, but it depends on what is happening in the economy</li><li>Need to be nimble with regard to what is happening in the economy</li><li>Employment growth is a good thing</li><li>We just want job growth to be consistent with path of inflation toward 2%</li></ul><p>Fed probabilities now:</p><ul><li>14% in NOvember vs 16% earlier today</li><li>Price of cut in June 2024 vs July earlier today</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.