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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.

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