Fed Barkin: Baseline outlook for 2025 is postive, with more upside than downside risks

Fed’s Barkin is on the wires saying:

• Baseline outlook for 2025 is positive, with more upside than downside risk to growth
• As long as employment and asset values remain strong, consumers will spend
• Inflation still not back to target, more work to do
• Story of 2025 will be less about monetary policy, more about economic fundamentals and perhaps geopolitics
• Fed is well positioned to respond regardless of how the economy develops
• Uncertainty in financial markets appears to have fallen, market-predicted policy path seems aligned with Fed median
• Increased understanding that long-term rates may not fall as much as had been hoped
• Labor market more likely to break toward increased hiring than toward layoffs
• There are some potential upside risks to inflation,

Comments are more hawkish, but aligned with the Fed rate decision from December 18.

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