Feds Cook: Risk are two sided. I believe that a soft landing is possible

<p>Fed's Cook is on the wires saying:</p><ul><li><p>I believe that a soft landing is possible</p></li><li><p>Risks are two-sided, must balance risk of not tightening policy enough against risk of doing too much</p></li><li><p>There’s a risk that continued demand momentum could slow pace of disinflation</p></li><li><p>Small business conditions, housing sector. Lower-income households may be signaling loader stress ahead</p></li><li><p>Also attentive to risk of renewed global economic shocks, including geopolitical and muted growth in China, Europe</p></li><li><p>Fed policies have spillovers abroad</p></li><li><p>Concurrent global central bank tightening may mean each central bank need do a bit</p></li><li><p>Supply chain improvements, drop in commodity prices has also helped inflation's fall</p></li><li><p>Increased multifamily housing supply will contribute to the expected further reduction in inflation</p></li><li><p>Labor supply, demand coming into better balance</p></li></ul><p>Lisa Cook is a Governor on the Federal Open Market Committee and as such as a permanent vote for policy..</p><p>The last tightening has been priced out of the market for 2023 after the CPI. The focus is now on rate cut probabilities. March has a 35% probability of a cut, while May is up to 68%.</p>

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