Current policy is in a good place to respond to ongoing shocks': Fed’s Barkin projects confidence

Agustin Wazne FXStreet

Bank of Richmond Federal Reserve (Fed) President Thomas Barkin said on Thursday that "current monetary policy is in a good place to respond to ongoing shocks." Speaking about the US economic outlook and monetary policy, Barkin added that future rate decisions will depend on how businesses and consumers react to developing conditions.

Key quotes:

Current policy is in a good place to respond to ongoing shocks.

Whether the Fed needs to hike rates depends on how businesses, consumers react to developing conditions.

Consumers are not happy but continue to spend.

Businesses are so far managing productivity improvements through attrition and not layoffs.

Policy of looking through supply shocks has worked well in the past, but it is easy to see more challenging conditions and more frequent shocks in the future.

So far long-term inflation expectations appear to remain contained.”

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 Canadian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.06%	0.00%	0.02%	0.24%	-0.09%	-0.13%	0.02%
EUR	-0.06%		-0.06%	-0.06%	0.16%	-0.16%	-0.24%	-0.06%
GBP	-0.01%	0.06%		0.02%	0.22%	-0.09%	-0.15%	-0.01%
JPY	-0.02%	0.06%	-0.02%		0.19%	-0.11%	-0.23%	-0.02%
CAD	-0.24%	-0.16%	-0.22%	-0.19%		-0.29%	-0.38%	-0.23%
AUD	0.09%	0.16%	0.09%	0.11%	0.29%		-0.08%	0.06%
NZD	0.13%	0.24%	0.15%	0.23%	0.38%	0.08%		0.14%
CHF	-0.02%	0.06%	0.00%	0.02%	0.23%	-0.06%	-0.14%

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).

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

GBP/USD advances to three-month peak beyond 1.3600

GBP/USD extends its daily rally and trades at its highest level since mid-May above 1.3600. The US Treasury Department decision to double the sice of liquidity support buyback operations for longer-dated nominal coupon securitiez weighs heavily on the US Dollar and helps the pair push higher. Earlier in the day, the data from the UK showed that annual Consumer Price Index (CPI) inflation picked up to 2.9% in July, meeting estimates, while core CPI rose by 2.6% YoY in July versus 2.5% expected.

EUR/USD surges to 11-week high above 1.1650 after US Treasury announcement

EUR/USD gathers bullish momentum and trades at its highest level since early June above 1.1650 on Wednesday. The US Dollar stays under heavy bearish pressure after the US Treasury announced that it will increase the size of liquidity support buyback operations for longer-dated nominal coupon securities. Later in the day, investors will scrutinize FOMC Minutes for fresh clues on policy outlook.

Gold pulls back from 11-week highs, battles $4,500

Gold eases from its highest level since early June, battling $4,500 in the Asian session on Thursday. The US Dollar draws some support from the US-Iran standoff and hawkish FOMC Minutes, capping the upside for the bullion. Gold short through the roof on Wednesday after the US Treasury Department stepped in to provide relief to bond markets, leading to a sharp decline in yields and boosting the non-yielding yellow metal.

HYPE soars 20% as Trump signals efforts to bring Hyperliquid to US market in White House meeting

Hyperliquid surged over 20% on Wednesday after President Donald Trump said the Commodity Futures Trading Commission is working to bring the decentralized perpetual futures platform into the US.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.