Fed's Daly: Policy is in a good place

Fed's Musalem: The US economy is pretty resilient. Fed's Musalem: I am very much looking forward to seeing official data. FED MUSALEM: LABOR MARKET IS AROUND FULL EMPLOYMENT, BEEN COOLING I FEEL WE HAVE A PRETTY GOOD SENSE OF WHERE ECONOMY IS *MUSALEM: CONSUMER BALANCE SHEETS ARE OK, CONSUMER NOT INDEBTED *MUSALEM: LOWER-INCOME FOLKS ARE TAKING ON MORE CREDIT-CARD DEBT Fed's Musalem: It is important to tread with caution, with limited room to ease policy further.

FED'S MIRAN: POTENTIAL END TO GOVERNMENT SHUTDOWN DOESN'T CHANGE OUTLOOK MUCH Fed's Miran: Data since September suggests Fed should be more dovish than its September view. FED'S MIRAN SAYS INFLATION DATA IS STALE AND IT IS COMING DOWN Fed's Miran: Some of my colleagues are looking at backwards-looking inflation. MIRAN: 50 BPS CUT APPROPRIATE FOR DECEMBER, 25 BPS AT A MINIMUM

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