Barkin Q&A: ‘Last mile’ of inflation may still take longer than expected

US debt level is a concern in the long termWorried price pressure could get ‘stuck’ next yearSees two further quarter-point cuts this year as a ‘reasonable path’ if economy evolves as expectedExpects unemployment and inflation to stay roughly stable for the rest of this yearSees renewed tight labor and demand spurred by Fed rate cuts as possibly keeping inflation lodged above 2% next yearCurrent rate cuts a proper recalibration of policy, but full normalization would require inflation to hit 2%

Translation: He’s willing to cut for awhile but won’t cut to 3.00-3.50% until inflation hits 2%. Given the cadence of Fed cuts, there is plenty of time to cut before we get there.

This article was written by Adam Button at www.forexlive.com.