Fed's Barkin: Fed is committed to getting inflation under control

Eren Sengezer FXStreet

Federal Reserve Bank of Richmond President Thomas Barkin reiterated on Wednesday that the Fed is committed to getting inflation under control and to returning it to the 2% target, as reported by Reuters.

Additional takeaways

"Fed may not get help from global events and supply chains but it has tools and credibility to deliver that outcome."

"Expecting inflation to come down but not immediately, not suddenly and not predictably."

"Seeing inflation coming down due to flattening demand, supply chain improvements and easing of commodity pressures."

"Recession fears a little inconsistent with monthly jobs growth of nearly 400,000, 3.6% unemployment rate."

"Returning to a normal environment doesn't have to require a calamitous decline in activity."

Market reaction

The dollar preserves its strength against its rivals with the US Dollar Index clinging to daily gains at 106.65.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD clings to gains near 1.1550 ahead of ECB rate decision

EUR/USD trades in positive territory near 1.1550 in Thursday's European trading hours. Rising bets that the European Central Bank will deliver a rate hike after its June policy meeting, keeping the Euro underpinned against the US Dollar. The focus will be on the ECB's updated projections and Lagarde's words.

GBP/USD: Gains remain capped below 1.3400 ahead of US PPI

GBP/USD is consolidating the rebound below 1.3400 in the European session on Thursday. However, the upside potential appears limited amid increased hawkish Fed bets and looming Mideast geopolitical risks, which could limit the US Dollar's pullback ahead of US PPI data.

Gold steadies above YTD low on softer USD; bearish bias remains amid Fed hike bets

Gold fades a modest Asian session bounce to the $4,118 region, though it manages to hold above the lowest level since November 2025. A softer Core US Consumer Price Index eased concerns about a runaway inflation spiral, weighing on the US Dollar and prompting some intraday short-covering around the precious metal.

XRP and XLM: Mild recovery attempts emerge amid mixed market signals

Ripple (XRP) and Stellar (XLM) show mild signs of recovery on Thursday after extending losses earlier this week. XRP is holding above the $1.10 level as bearish momentum begins to fade, while XLM has bounced modestly from a key support zone.

European Central Bank set to hike interest rates for first time in nearly three years

The European Central Bank is set to announce its monetary policy decision at 12:15 GMT following its June meeting. The Frankfurt-based institution is widely expected to raise its key interest rates by 25 basis points, taking the deposit facility rate to 2.25% from 2%.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.