You're listening to Closing Bell in progress.

A guess here today as to what it would be.

Again, what I would say is that we think our policy rate is in a good place.

We think it leaves us well positioned to respond in a timely way to potential developments.

That's where we are.

And that, depending on the way things play out, that could include

rate cuts, you know, we could include, conclude us holding where we are. We just are going to need to

see, you know, how things play out before we make those decisions.

Great. And just to follow up on that, I mean, when you address the issue of how the Fed would handle

both rising unemployment and rising inflation, how are you thinking about the fact that addressing

one could exacerbate the other? So a rate cut to reduce unemployment could worsen inflation and

vice versa. How does that that how do you handle those

challenges you just you just captured the this is the issue with with the two goals being

intention it's a very challenging question now there can be a case in which one goal is very far

one variable is very very far from its goal much farther than the other and if so you concentrate on that one

and frankly that was the case well it wasn't a case where they were really in tension but if you go back to

2022 it was very clear that we needed to focus on inflation the labor market was also super tight so it wasn't

really a tradeoff.

You know, I think you know what our framework document says.

It says we'll look at how far each variable is from its goal, and also will factor in the time it would take to get there.

So, you know, that's going to be potentially a very difficult judgment.

But the data could break in a way that it's not. You know, I just don't think we know that.

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