Komal Sri-Kumar says the labor market is ok and the fed is making a mistake by cutting, inflation not at target.
- Speaking on CNBC, Sri-Kumar said he thinks the labor market is not weak. Cited 114 jobs created in July and noted that the April jobs data showed a 108k jobs increase. Sees a positive trend likely to continue into the fall.
- Noted that inflation is still above target, and the “last part of the journey is always the most difficult.” Said Powell declared victory last December only to see inflation perk up again in early 2024. Sees a risk that inflation will pick up if the fed cuts.
- On inflation, thinks on the US side, inflation could pick up in rent, driven by increases in home prices. Additionally, sees uncertainty around global fuel prices and other factors.
- Komal Sri-Kumar Does like bonds because the fed will continue cutting and is no longer “data dependent.”
