Challenges Ferguson that recent data shows stubborn inflation, not the disinflation he hoped for, and that his stance against cuts is validated.
Joe
Roger Ferguson
Acknowledges disappointment with inflation data, emphasizes the need to get inflation under control, but notes the positive aspects of a strong labor market and resilient consumer.
Interprets Ferguson's position as meaning the Fed should 'do nothing' and that the last rate cut may have been unnecessary given stubborn inflation and a strong labor market.
Joe
Roger Ferguson
Agrees the current data is not cut-worthy. Notes the last Fed decision was close, but the Fed is now well-positioned to be data-dependent, aligning with markets on a 'wait and see' stance for January.
Argues that Fed independence is essential to avoid political pressure for premature rate cuts while inflation is a problem.
Joe
Roger Ferguson
Strongly agrees Fed independence is critical, citing global central banker support and historical context, warning it should not be taken for granted.
Asks if the focus on independence strengthens the case for a Fed nominee like Kevin Warsh (seen as independent) over Kevin Hassett (seen as loyal).
Speaker5
Roger Ferguson
Agrees, suggesting the pendulum may swing toward a candidate with a clear record of independence due to heightened political scrutiny.