Fed officials cautiously cheer victory against inflation
|Thursday’s mixed inflation data from the United States pleased a slew of Federal Reserve (Fed) policymakers but their tone appears slightly cautious.
Firstly, Philadelphia Federal Reserve Bank President Patrick Harker crossed wires, via Reuters, and appeared supportive of the US central bank’s victory while marking the progress on inflation. However, the policymaker also anticipated a minor increase in the Unemployment Rate and a ‘soft landing’ after initially positive comments.
Following that, Atlanta Federal Reserve Bank President Raphael Bostic also expressed gratitude for the Fed’s hard efforts to tame the too-high inflation. The policymaker, however, also showed uncertainty about pandemic labor market changes.
It should be noted that the Wall Street Journal’s (WSJ) Editor Nick Timiraos shared comments from Boston Federal Reserve President Susan Collins by citing Monday’s interview with them, which wasn’t shared previously. In that piece, the WSJ Editor signals Fed’s Collins as saying that they are near or perhaps at a sufficiently restrictive level of rates.
Market reaction
Although the Fed talks were initially received by the US Dollar’s retreat, a second reading showed the policymakers’ indecision, as well as the confirmation of the rates being higher for longer even if not changed. With this, the Greenback regained the previous upside momentum.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.