Fed's Barkin: Anecdotal information points to more economic slowing that data is showing

<ul><li>Anecdotal info points to better labor demand and slowing growth</li><li>Fed has time to see data before making next rate hike move</li><li>Path for inflation is not yet clear, but sees clear progress</li><li>Wage pressures remain but overall they have moderated</li><li>Still seeking confirmation that economy is slowing</li><li>Businesses see less pricing power but still willing to probe on price increases</li><li>If recession arrives, it's possible it would be milder than other downturns</li><li>“I see an economy that is much further along the path to demand normalization.”</li></ul><p>The 'clear progress' on inflation is an important point but he will wait to see if the anecdotal info shows up in hard data; it certainly didn't in today's retail sales report.</p><p>“The data will tell you demand is not weak," he said. but “there is somewhat of a disconnect between the data and what I hear on the ground.”</p><p>Reminder that the Fed blackout starts on Saturday. Though with markets pricing only a 12% chance of a hike on November 1, there's no real work for the Fed to do in order to manage expectations.</p>

This article was written by Adam Button at www.forexlive.com.