Reasons for holding interest rates

Dr. Catherine Mann discusses the decision to hold interest rates based on three main reasons. Firstly, she highlights the impact of consumers disciplining pricing behavior, specifically in the services sector. This disciplined consumer approach influences firms' pricing strategies. Secondly, she notes a shift in the labor market dynamics, where firms are now hesitant to increase hours or headcount, contradicting household preferences. Additionally, she mentions the fiscal policy's expected impact on labor supply. Lastly, Dr. Mann emphasizes the importance of monitoring the financial market curve and its progression as a key factor influencing the decision to maintain rates.