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Fed's Balkin: Fed capable of responding to economic changes

Fed's Balkin: Fed capable of responding to economic changes

Bitget2024/11/12 17:09

The economy is in good shape, which allows the Fed to lower borrowing costs. ‘A strong but more discerning consumer, coupled with a more productive and higher-value labour force, has the economy in great shape. ‘ Balkin said Tuesday in remarks prepared for a speech at the Baltimore Common Summit. ‘The Fed has the ability to respond appropriately no matter how the economy evolves,’ he said, adding that interest rates are off their peak but still above historic lows. Balkin said he was considering two scenarios for the economy: as uncertainty over the election subsides, businesses could begin to reinvest and hire, leaving the Fed to focus on the upside risks to inflation. Or, companies could respond to margin compression from weaker pricing power by laying off workers, which would increase the employment risk to the Fed.

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