Fed's Barkin: Labor market fees like it's moving in a steady, softening pattern

<ul><li>Consumer demand remains healthy, though slowing</li><li>Labor market reacceleration at this point seems unlikely</li><li>There is more uncertainty around the path of inflation given that progress over last six months has been so reliant on goods</li><li>Companies still trying to raise prices; need to see how consumers and competitors react</li><li>First quarter will be important given that businesses tend to mark up at the start of the year</li><li>US still at a point where inflation is above target and employment is near max</li><li>Labor market is 'normalizing nicely'</li><li>No problem 'toggling' rate to more normal levels as you build confidence inflation is falling</li></ul><p>I think there is some real insight in these comments. The 'toggling' idea is like the Fed taking out insurance and moving down to around 4.00% if inflation stays low. The comment about Q1 pricing is an important one too, given how strong prices rose in Jan/Feb of last year.</p>

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