Fed’s Barkin: Uncertainty argues for caution in last stages of inflation fight

• Uncertainty argues for caution in the last stages of inflation fight
• Policy should remain modestly restrictive until there is more confidence inflation will return to target.
• Expects upcoming PCE will show a further decline, the Fed has made a light of progress.
• The economy is in a good place.
• Will take a wait and see approach about our upcoming policy changes impact the economy.

The US PCE data will be released on Friday at 8:30 AM. Expectations are for:

• PCE MoM to rise by 0.3%
• PCE YoY to fall to 2.5% from 2.6% last month
• Core PCE MoM to rise by 0.3%
• Core PCE YoY to fall to 2.6% from 2.8% last month

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