Ex Fed Pres.Lacker: There is a spread of optimism &some of that spread to Fed officials

<ul><li>There is a strong real spending growth</li><li>Wage growth is still not consistent with a 2% inflation rate</li><li>Does not see inflation expectations coming down to be consistent with 2% inflation</li><li>No signs of recession, but not confident inflation will fall far below 3%</li><li>Reasonable to expect 2 to 3 rate cuts in 2024</li><li>Fed should avoid declaring victory on inflation</li><li>Fed needs to reestablish credibility and re-anchor inflation expectations</li><li>Expects the Fed to be adverse to cutting rates too soon</li><li>At the end of the day it's about inflation numbers and then coming in close to 2%</li><li>if inflation numbers come in around 3% for a year, the Fed will need to think about taking stronger action</li><li>Looking at initial claims and vacancies as a part of employment, and things look fine with regard to the labor market</li></ul>

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