Federal Reserve's Kashkari: The Fed may need to be more aggressive

Ross J Burland FXStreet

Federal Reserve's Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, has crossed the wires with various comments, arguing that the fed may need to be more aggressive.

Key comments

We've done quite a bit to remove support for economy through forward guidance.

We are removing accommodation even faster than we added it at start of covid pandemic.

I don't know how high rates need to go to bring inflation down.

How much fed will need to will depend on supply side.

Labor market is not fully healed.

Labor market strong by almost any measure.

I don't know the odds of pulling off a soft landing.

I am seeing some evidence we are in a longer-term high inflation regime.

If so the fed may need to be more aggressive.

Fact that bond and stock market are adjusting means we have credibility.

Getting inflation back down is paramount.

Market implications

In the face of a steadfastly hawkish Fed, the US dollar would be expected to remain firm so long as the economy continues to grow and avoids a recession.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD jumps to 0.7050, fresh one-month top after hot Australian CPI

AUD/USD attracts buyers for the second straight day on Wednesday, rising to a fresh high since September 23 during the Asian session. A hot Australian CPI print reaffirmed bets for an imminent RBA rate hike in November and boosted the Australian Dollar. Meanwhile, the US Dollar pauses after a three-day rally to a near two-week high ahead of the crucial FOMC rate decision, lending additional support to the currency pair.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold drops as oil price rebounds, Fed’s policy eyed

Gold slips 0.3% to near $4,050 in the Asian trade on Wednesday, as oil prices bounce back after a two-day correction. The precious metal is expected to face high volatility as the Federal Reserve is scheduled to announce the monetary policy later in the day at 18:00 GMT.

Ethereum ETFs near record monthly outflows as ETH tests $2,310

Ethereum (ETH) held steady on Tuesday, consolidating at $2,340, just above $2,300 after last week’s decline. Three measures sit within about $18 of each other: ETH’s realized price at $2,310, the 200-day Exponential Moving Average (EMA) at $2,315, and the $2,328 average cost basis of wallets holding 1K-10K ETH.

Bitcoin, Ethereum and XRP recover as Big Tech earnings take center stage

Bitcoin, Ethereum and Ripple extend their recovery on Wednesday as investors turn their attention to major technology companies' earnings reports. Microsoft and Alphabet are due to report their Q3 earnings on Wednesday, followed by Amazon on Thursday.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.