CoinVoice has recently learned that Joseph Lavorgna, chief economist at SMBC Nikko Securities, wrote that recent inflation and labor cost data have raised questions about the wisdom of the Federal Reserve's interest rate cut today.
He noted that data released today showed that unit labor costs increased 3.4% in the past four quarters through September, while core services inflation rose 4.4% year-on-year in the third quarter, well above the Fed's 2% overall inflation target. "This makes us wonder why the Fed was so bold to cut interest rates this month," Lavorgna wrote. "Wouldn't it be more prudent to wait and see how the labor market evolves after the hurricane and the Boeing strike? What's the harm in waiting until monetary policymakers receive clearer data at next month's meeting before cutting rates?" (Jinshi) [Original link]