• Supported rate cut this week
• Risk of sharp increase in unemployment warrants some Fed action
• Neutral rate has likely risen to 3.1%
• Fed policy has not been as tight as previously thought
• Can always cut rates more quickly if labour market weakens more than expected
• If labour market proves resilient or inflation rises, should pause and hold policy rate
• Open to raising policy rate if economic conditions warrant
• Hard to see inflation climbing much higher than 3% from tariffs

This article was written by Giuseppe Dellamotta at investinglive.com.

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