Why the Fed is feeling comfortable enough to cut rates

Matthew Luzzetti, Deutsche Bank's chief U.S. economist, recently appeared on Stocks In Translation. He discusses the Federal Reserve's plans to cut rates while inflation has yet to hit the central bank's 2% target. He comments, "I think the Fed has a view, and, and we would agree with it, that you've seen disinflation across a lot of categories. One remaining item is rental price inflation, which looks sticky, but that should come down over the next six to 12 months. And, the reason is we've seen it already reflected in the private sector estimates of rent."

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This post was written by Neil Mulcahy.

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