Fed Vice Chair Richard Clarida said that US consumers and economy are in a “good place,” the labor market is “very healthy”. Though, he also noted uncertainties over global slowdown, trade tensions and persistently low inflation overseas. He pledged that Fed “will act as appropriate to sustain a low unemployment rate and solid growth and stable inflation”. Yet, he emphasized that Fed is “not on a preset course” and policymakers will take the meetings “one at a time”.
Dallas Fed President Robert Kaplan said he has an “open mind” as regards to next rate move. And, “time will tell” if this year’s two rate cuts are enough to support the economy. Yet, he’s cautious that “if we wait for weakness in global growth and manufacturing and business investment to seep into other parts of the economy, if we wait see that weakness manifest itself, I think we likely have waited too long.”
