Fed’s Barkin: Would support rate cuts when there is conviction inflation is heading down

Anil Panchal FXStreet

“Fed is still a ‘good way away’ from the 2% inflation target,” said Thomas Barkin, President of the Federal Reserve Bank of Richmond.

Key statements

Will not prejudge July meeting.

The question of how much slack is needed to lower inflation is "the fundamental question" the Fed needs to dig into.

A lot of pandemic era forces still countering fed tightening, including excess savings, housing and asset wealth, fiscal spending.

Does seem that demand is weakening.

Market reaction

The news fails to inspire the US Dollar bulls amid broad hawkish concerns versus the latest dovish remarks from the Fed policymakers. Even so, the US Dollar Index (DXY) defends the previous day’s bounces off a six-week low, around 102.40 by the press time.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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