Powell: The labor market is still strong, though we’ve seen a continued rebalancing

• We want to see more progress on inflation
• The latest data shows we’re on a better path on wages
• We would like to see more data like we’ve seeing
• The latest PCE at 2.6% shows ‘really significant progress’
• “We just want to understand that the levels we’re seeing are a true reading on what’s happening in underlying inflation”
• We have the ability to take our time and get his right
• If we go too soon, we could undermine the work we’ve done on inflation
• Risks are coming much more into balance now

The Fed funds market is pricing in 47 bps of cuts this year.

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