Fed's Bostic: The timing for a rate cut remains uncertain
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UPGRADEAccording to an interview with Reuters, Atlanta Federal Reserve President Raphael Bostic suggested that the Fed is probably still planning to reduce interest rates this year, despite uncertainty regarding when and by how much policy easing will occur, as well as the gradual pace of inflation declines.
Key Quotes
Most firms say pricing power is at or near its limit, with wage growth moving to pre-pandemic levels.
Optimistic disinflation will continue, though the path back to the Fed's 2% target may take until late next year or early 2026.
He is thinking less about the extent of rate cuts this year and more about getting the timing right for the start of easing.
Job growth needs to slow to be consistent with the 2% target, though that does not mean unemployment will spike.
Gain of 175,000 jobs in april may be low for pandemic-era, but still above what economy needs to account for population, labor force growth.
Market Reaction
The Greenback keeps its slight buying bias in the low 105.00s when tracked by the USD Index (DXY) ahead of the release of the advanced Michigan Consumer Sentiment and speeches by Bowman, Barr and Goolsbee.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.03% | 0.08% | -0.17% | -0.02% | -0.15% | -0.32% | -0.09% | |
| EUR | 0.03% | 0.10% | -0.17% | -0.01% | -0.12% | -0.31% | -0.05% | |
| GBP | -0.08% | -0.10% | -0.25% | -0.12% | -0.21% | -0.39% | -0.15% | |
| JPY | 0.17% | 0.17% | 0.25% | 0.07% | -0.01% | -0.16% | 0.08% | |
| CAD | 0.02% | 0.01% | 0.12% | -0.07% | -0.12% | -0.29% | -0.04% | |
| AUD | 0.15% | 0.12% | 0.21% | 0.01% | 0.12% | -0.17% | 0.06% | |
| NZD | 0.32% | 0.31% | 0.39% | 0.16% | 0.29% | 0.17% | 0.24% | |
| CHF | 0.09% | 0.05% | 0.15% | -0.08% | 0.04% | -0.06% | -0.24% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
According to an interview with Reuters, Atlanta Federal Reserve President Raphael Bostic suggested that the Fed is probably still planning to reduce interest rates this year, despite uncertainty regarding when and by how much policy easing will occur, as well as the gradual pace of inflation declines.
Key Quotes
Most firms say pricing power is at or near its limit, with wage growth moving to pre-pandemic levels.
Optimistic disinflation will continue, though the path back to the Fed's 2% target may take until late next year or early 2026.
He is thinking less about the extent of rate cuts this year and more about getting the timing right for the start of easing.
Job growth needs to slow to be consistent with the 2% target, though that does not mean unemployment will spike.
Gain of 175,000 jobs in april may be low for pandemic-era, but still above what economy needs to account for population, labor force growth.
Market Reaction
The Greenback keeps its slight buying bias in the low 105.00s when tracked by the USD Index (DXY) ahead of the release of the advanced Michigan Consumer Sentiment and speeches by Bowman, Barr and Goolsbee.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the British Pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.03% | 0.08% | -0.17% | -0.02% | -0.15% | -0.32% | -0.09% | |
| EUR | 0.03% | 0.10% | -0.17% | -0.01% | -0.12% | -0.31% | -0.05% | |
| GBP | -0.08% | -0.10% | -0.25% | -0.12% | -0.21% | -0.39% | -0.15% | |
| JPY | 0.17% | 0.17% | 0.25% | 0.07% | -0.01% | -0.16% | 0.08% | |
| CAD | 0.02% | 0.01% | 0.12% | -0.07% | -0.12% | -0.29% | -0.04% | |
| AUD | 0.15% | 0.12% | 0.21% | 0.01% | 0.12% | -0.17% | 0.06% | |
| NZD | 0.32% | 0.31% | 0.39% | 0.16% | 0.29% | 0.17% | 0.24% | |
| CHF | 0.09% | 0.05% | 0.15% | -0.08% | 0.04% | -0.06% | -0.24% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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