Former Kansas City Fed Pres. Hoenig: Don't think there's any case for cutting rates

Monetary Policy & Inflation - The former Kansas City Fed President suggests the court should sort out the authority of the president to fire someone, emphasizing the need for due process [2] - The analyst observes that inflation is at 3%, one percentage point above the target, while the Fed is considering cutting rates [7] - The PCA inflation has tipped up slightly, and unemployment remains at 42% [9] - With inflation at 3%, real interest rates are approximately 15%, which is close to neutral [10] - There is no case for cutting rates in a rising inflation environment [11] - The recent budget reconciliation bill is expansionary, adding another $2 trillion of debt [12] - Cutting rates in an environment of rising inflation and low unemployment poses a risk to the Fed's appearance [14] Labor Market - A Fed governor suggests the labor market is weak and about to turn negative based on extrapolations of revisions [8] - Initial claims were down, indicating a relatively stable labor market [10] Fed Actions & Considerations - The Fed may be facing pressure from elsewhere on the FOMC to cut rates [13] - It may be time for the Fed to wait and see rather than signaling rate cuts [11]