At the most recent Federal Open Market Committee (FOMC) meeting, I dissented because I concluded that cutting the policy rate by 25 basis points was the appropriate stance of policy. In a speech I gave July 17, I laid out the case for cutting the policy rate at the July FOMC meeting and my views have not changed since then. I will recap the reasons for doing so. First, tariffs are one-off increases in the price level and do not cause inflation beyond a temporary increase. Standard central banking practice is to "look through" such price-level effects as long as inflation expectations are anchored, which they are. ... (full story)