Feds Barkin: I'm hearing consumers slowing down, but not falling off the table

<ul><li>Revised consumer spending data is more consistent with what I am hearing on the ground</li><li>I'm hearing consumers slowing down, but not falling off the table</li><li>Skeptical that price setters at this point have gone back to where they were pre-Covid</li><li>5.2% GDP tells companies that they can still try to raise prices</li><li>The goods inflation has clearly come down. Then that of that is basically back to pre–Covid levels</li><li>While I think that entry rates have clearly come down, but housing inflation is still going up</li><li>A lot of services prices are still going up driven by wages</li><li>I am still in the "looking to be convinced category" that inflation is coming down</li><li>Not willing to take another rate hike off the table.</li><li>Want the option of doing more on rates if inflation flairs again.</li><li>Markets have a different forecast than me on inflation</li><li>I believe inflation will be stubborn then we'd like</li><li>Talking about rate cuts is premature</li><li>We do hope the messages we send go into the financial conditions in the markets.</li><li>Try not to get overly focused on the financial conditions in the markets.</li><li>Market bets on 4 rate cuts next year might be based on expectations for soft landing. I hope they are right.</li><li>My forecast is that inflation will come down but stubbornly</li><li>We will in the end have some kind of slowdown</li><li>To lower rates you'd need to be confident inflation is headed back to 2%.</li></ul><p>Barkins comments are a bit more cautious on inflation and therefore cautious on the rate path. He is not convinced that no more rate hikes are needed. </p>

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