MANN shifts to longer hold bias on inflation persistence
An economist known as MANN says the trade-off between inflation risk and economic activity has led them to place more weight on inflation persistence, shifting their view towards a longer hold and potentially a need to lean against that risk.
In a statement attributed to MANN, the economist highlighted a revised assessment of the inflation-activity trade-off. The shift places greater emphasis on inflation persistence, prompting a move toward favoring a longer hold of current interest rate levels. MANN also flagged the possibility that policy may need to lean against inflation risks going forward.
The remarks suggest a more cautious stance on monetary easing, with the focus remaining on price stability. No specific timeline or magnitude was provided.
Source: First Squawk