Fed's Mester: Fed will discuss policy stance as economy continues to improve
|As the US economy continues to improve, the Federal Reserve will have discussions about the policy stance overall, Cleveland Federal Reserve President Loretta Mester told CNBC on Friday.
Additional takeaways
"Fed is looking at what the data says and not just the forecast."
"Some valuations in the stock market look higher than can be supported by fundamentals but the Fed policy is not driving that."
"Treasury market had issues at the start of the pandemic and fed is looking at longer-term issues."
"Our job is to make sure that the fundamentals in the market are sound."
"It behoves us to keep an eye on financial stability issues."
"At this point, I don't see any reason to react to what's happening in markets with monetary policy tools."
"Expecting to see progress continue to be made on the employment front."
"The key point is the Fed is attuned to the risks on the upside and downside."
Market reaction
These comments don't seem to be helping the greenback erase the losses it suffered against its rivals following the disappointing May jobs report. As of writing, the US Dollar Index was down 0.4% on the day at 90.12.
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.