Japan’s Growth Strategist Member Kataoka: Exit From Deflation Is Imminent

ECB's de Guindos: Growth is positive but still very low ECB's de Guindos: We need a very prudent and cautious approach to policy ECB's de Guindos: Inflation will be very close to 2% target. ECB's de Guindos: We firmly believe the level of rates is correct - Paper

The U.S. economy has remained remarkably resilient this year, navigating uncertainty, changes in government policy, including tariffs, immigration, deregulation, and taxes, an AI-driven technology surge, and modestly restrictive monetary policy. At the same time, inflation, subtracting the impact of tariffs on goods prices, has gradually declined, although it remains elevated. This is all good news and reflects the economy’s underlying strength and our ongoing progress in restoring price stability. But the balance of risks has clearly shifted, as the labor market has rapidly softened and inflation has risen less than many projected earlier in the year. The Federal Open Market Committee (FOMC) appropriately reduced the policy rate—by a total of 50 basis points this year—as part of prudent risk management. These adjustments provide needed insurance for the labor market, while maintaining a modestly restrictive policy stance to further reduce inflation. Fed's Daly: Restrictive policy is having a downward pressure on inflation FED'S DALY SAYS TARIFFS MAINLY AFFECT GOODS, NOT SERVICES OR OTHER AREAS FED'S DALY: WE ARE LIKELY EXPERIENCING A NEGATIVE DEMAND SHOCK