|

Fed's Bostic: Inflation remains well above Fed's 2% target

Atlanta Federal Reserve (Fed) President Raphael Bostic said on Thursday that the Fed policy has been positioned to return inflation to the 2% target, per Reuters.

Key takeaways

"World is very much in a transitional period."

"Inflation remains well above Fed's 2% target."

"Unemployment rate has been consistent with full employment for some time."

"50k to 75k is now closer to the job market's monthly replacement rate."

"With so much in flux, large revisions to data may be more frequent."

"When Fed moves on policy, the direction should be consistent."

"Still expecting one rate cut for this year but forecast is in flux."

"I'm not stuck on anything when it comes to monetary policy."

"Business contacts say costs are going up but transmission to prices inconsistent."

"Underlying state of economic fundamentals is strong."

"By year-end there will be enough clarity for firms that key decisions can be made."

"Fed policy is marginally restrictive right now."

"Every central banker should expect to get yelled at."

"Growing challenges with economic data collection."

Market reaction

These comments received a neutral/hawkish score of 5.6 from FXStreet Fed Speech Tracker. The US Dollar Index holds its ground and was last seen rising 0.15% on the day at 98.36.

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 Japanese Yen.

USDEURGBPJPYCADAUDNZDCHF
USD0.09%0.01%0.41%0.08%0.12%-0.03%0.33%
EUR-0.09%-0.10%0.31%-0.01%0.07%-0.07%0.23%
GBP-0.01%0.10%0.40%0.09%0.19%0.04%0.34%
JPY-0.41%-0.31%-0.40%-0.33%-0.28%-0.40%-0.04%
CAD-0.08%0.00%-0.09%0.33%0.00%-0.13%0.24%
AUD-0.12%-0.07%-0.19%0.28%-0.00%-0.07%0.23%
NZD0.03%0.07%-0.04%0.40%0.13%0.07%0.30%
CHF-0.33%-0.23%-0.34%0.04%-0.24%-0.23%-0.30%

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

Eren Sengezer

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.

More from Eren Sengezer
Share:

Editor's Picks

AUD/USD stays defensive below 0.7150 after Chinese data

AUD/USD remains on the back foot below 0.7150 in the Asian session on Tuesday, close to an over three-week low touched the previous day. US bond yields hold near multi-year highs ahead of the FOMC meeting and oil-driven inflation risks, supporting the US Dollar and weighing on the currency pair. Mixed Chinese activity data for August also fail to inspire the Aussie.

USD/JPY extends gains toward 155.00 amid USD resurgence

USD/JPY keeps pushing higher toward 155.00 early Tuesday, looking for more upside, as traders await the FOMC and BoJ meetings this week. Meanwhile, Fed rate-hike bets and oil-driven inflation risks keep US bond yields near multi-year highs, supporting the US Dollar and the pair. That said, a more hawkish repricing of the BoJ normalization path might continue to underpin the Japanese Yen and could limit USD/JPY's upside. .

Gold set to fall toward $4,000 as Warsh faces a Fed rate-hike dilemma

As the Federal Reserve monetary policy announcement approaches and the Middle East war intensifies, the US Dollar resumes its advance. Gold price posted a tepid attempt to recover its shine in early August, but with renewed USD demand, the bright metal faltered miserably and is now closer to the $4,000 mark than the encouraging $4,700 peak from a month ago.


Ripple, Cardano, Hyperliquid – Easing bullish momentum sparks downside risks

Top altcoins, including Ripple (XRP), Cardano (ADA), and Hyperliquid (HYPE), are trading in the red on Tuesday, with roughly 2% losses so far. The altcoins are facing downside pressure ahead of the CLARITY Act cloture vote scheduled for Tuesday.

Markets slide as FOMC approaches
The US Dollar remains strong as markets turn increasingly cautious ahead of the FOMC. Stocks are tumbling, while Gold and Silver are moving lower under pressure from the stronger Dollar. The Japanese Yen is weaker again, while Crypto is correcting. BTC is approaching a key technical test and could fall below its 50-week moving average, while ETH remains above $2,405.
Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight
The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.