Fed is 'locked' in to hold rates steady: Economist

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Jason Furman News

Federal Reserve

Ahead of the highly anticipated Federal Reserve decision on interest rate cuts this Wednesday, investors are fixated on the upcoming release of the May CPI...

rate cut expectations.leaving them unable to respond. He acknowledges that regardless of the CPI data's outcome, the issue is that while some months yield favorable inflation prints of 2%,"the bad months it's way above 2%, that means it's averaging out to a decent amount above 2%." However, Furman anticipates that"Some of this inflation is probably embedded in expectations," Furman tells Yahoo Finance.

Can you explain the degree to which that is playing into this picture that we continue to have this robust growth in our economy?Yeah, I mean, over the last year, we've seen 250,000 jobs a month and yet the unemployment rate has drifted up.A bit of that is some increased labor force participation, but a lot of it is um that the uh immigration inflows are just much larger than we thought.

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