The Federal Reserve will have ample food for thought by the time the critical May FOMC meeting comes around. Either way, IBM Vice Chair and Former White House chief economic advisor Gary Cohn tells Yahoo Finance he thinks we're "at the end of the cycle".
His comments come in the aftermath of another 'sticky' inflation readout; despite the headline figure cooling, the core number leaves the Fed's next rate decision in some doubt. U.S. consumer prices rose just slightly in March, marking the slowest pace of increases since May 2021, according to the latest data from the Bureau of Labor Statistics.
The former number two at Goldman Sachs - a position he held during the height of the financial crisis - isn't breaking from the pack on the central bank's next move however."I'm more or less in the 25 basis point camp now," he says.
Cohn made clear he's waiting to see how Jay Powell sizes up the tighter credit landscape in May, and a new set of data at his fingertips. "With the 5% reading, banks stabilizing, we've seen a lot of movement in deposit funds. We have to...evaluate that," he adds.
Cohn spoke with Brad Smith and Julie Hyman. Watch the entire interview here.
Key Takeaways
00:00:18: 25 basis points
00:00:38: Banking system
00:01:28: End of the cycle
