{"id":47302,"date":"2019-07-18T17:25:03","date_gmt":"2019-07-18T22:25:03","guid":{"rendered":"https:\/\/olduvai.ca\/?p=47302"},"modified":"2019-07-18T17:25:09","modified_gmt":"2019-07-18T22:25:09","slug":"the-precog-fed-vice-chair-clarida-says-fed-shouldnt-wait-for-economy-to-turn-down-to-cut-rates","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=47302","title":{"rendered":"The Precog Fed: Vice Chair Clarida Says Fed Shouldn&#8217;t Wait For Economy To Turn Down To Cut Rates"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/news\/2019-07-18\/precog-fed-vice-chair-clarida-says-fed-shouldnt-wait-economy-turn-down-cut-rates\">The Precog Fed: Vice Chair Clarida Says Fed Shouldn&#8217;t Wait For Economy To Turn Down To Cut Rates<\/a><\/h3>\n\n\n\n<p>There was something bizarre in yesterday&#8217;s latest Beige Book: it painted an unexpectedly strong picture of the economy. Here, again, are the key points&nbsp;<a href=\"https:\/\/www.zerohedge.com\/news\/2019-07-17\/beige-book-describes-solid-stable-modestly-expanding-economy-so-time-rate-cut\">we pulled from the summary&nbsp;<\/a>of various regional Feds&#8217; takes on the current state of the US economy:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>In most Districts, sales of retail goods increased slightly overall,<\/li><li>Activity in the nonfinancial services sector rose further<\/li><li>Tourism activity was broadly solid, with Atlanta and Richmond recording robust growth in this sector,<\/li><li>Some Districts continued to report healthy expansion in the transportation sector.<\/li><li>Home sales picked up somewhat, but residential construction activity was flat.<\/li><li>Nonresidential construction activity increased or remained strong in most re-porting Districts, and commercial rents rose<\/li><li>A modest pickup in manufacturing activity since the last reporting period was observed in a few Districts<\/li><li>Increased demand for loans was broad-based, with all but two Districts noting some growth in financing activity<\/li><li>Employment grew at a modest pace, as labor markets remained tight; contacts across the country experiencing difficulties filling open positions.<ul><li>The reports noted continued worker shortages across most sectors, especially in construction, information technology, and health care.<\/li><\/ul><\/li><li>Compensation grew at a modest-to-moderate pace, similar to the last reporting period, although some contacts emphasized significant increases in entry-level wages.<\/li><li>Rate of price inflation was stable to down slightly from the prior reporting period. Districts generally saw some increases in input costs, stemming from higher tariffs and rising labor costs.<\/li><li>Reduced supply boosted prices for some agricultural goods; some Districts noted increased upward transportation pricing pressures, while others highlighted price declines due to reduced demand for shipping services.<\/li><\/ul>\n\n\n\n<p>But why good news bizarre? Because as NY Fed president John Williams\u00a0<a href=\"https:\/\/www.zerohedge.com\/news\/2019-07-18\/stocks-bonds-jump-dollar-dumps-after-fed-williams-zirp-comments\">made clear today<\/a>, not only is the Fed cutting in July, but the Fed will likely continue cutting until we get back to ZIRP again:<\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Precog Fed: Vice Chair Clarida Says Fed Shouldn&#8217;t Wait For Economy To Turn Down To Cut Rates There was something bizarre in yesterday&#8217;s latest Beige Book: it painted an unexpectedly strong picture of the economy. Here, again, are the key points&nbsp;we pulled from the summary&nbsp;of various regional Feds&#8217; takes on the current state of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[122,303,431,534],"class_list":["post-47302","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-bank","tag-fed","tag-interest-rates","tag-monetary-policy"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47302"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47302\/revisions"}],"predecessor-version":[{"id":47303,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47302\/revisions\/47303"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}