More Fed officials speak today. While they generally sound non-committal to a rate cut, they are all open to, if trade tensions worsen.
Dallas Fed President Robert Kaplan said it’s “early to make a judgement” on rate cut. But he noted “we’re going to be very vigilant in understanding these heightened trade tensions. See if they feed through to the economy. Most importantly, see if they persist.”
Fed Governor Lael Brainard told Yahoo Finance that “we’ll be prepared to adjust policy to sustain the expansion.” And “trade policy is definitely a downside risk to the economy. And our job is to sustain the expansion, and we’ll need to see going forward what that means for policy.”
Chicago Fed President Charles Evans told Bloomberg TV that he’s “a little nervous about the low inflation rate”. And, “that by itself could be a reason for a little more accommodation.”
