Fed mon pol report: Labor supply-demand balance resembles pre-pandemic period

• Further progress seen on inflation this year but still need ‘greater confidence’ before moving to cut rates
• Housing-related inflation to gradually decline
• Still significant disparities in the jobs market
• Financial system sound and resilient
• Valuations high relative to fundamentals in major asset classes
• Full report
• “Inflation eased notably last year and has shown modest further progress so far this year”​​.
• “The labor market continued to rebalance over the first half of this year, and it remained strong”​​.
• “Real GDP growth is reported to have moderated in the first quarter after having increased at a robust pace in the second half of last year”​​.
• “Measures of longer-term inflation expectations are within the range of values seen in the decade before the pandemic and continue to be broadly consistent with the FOMC’s longer-run objective of 2 percent”​​.
• “Personal consumption expenditures price inflation slowed notably last year and has shown modest further progress this year, it remains above the FOMC’s longer-run objective of 2 percent”

The Federal Reserve’s Monetary Policy Report is a semiannual report submitted to Congress. It’s an overview of the nation’s economic and financial conditions, as well as the Federal Reserve’s monetary policy actions and plans but it’s rarely a market mover.

This article was written by Adam Button at www.forexlive.com.