Fed's Bullard: Inflation breakevens suggest Fed is being too hawkish

Eren Sengezer FXStreet

Federal Reserve Bank of St. Louis President James Bullard continues to speak in London with the key quotes, via Reuters, found below:

Don't think in situation where need to be preemptive, we can wait and see with respect to future policy
U.S. is not moving away from 2 percent growth
The FOMC has been largely correct that inflation was returning towards target over recent years
Disconcerting that inflation gone away from 2 percent
We have been raising rates against a backdrop of relatively weak growth, downside inflation surprises
Financial market reaction to March tightening has not been good, would have expected yields to rise with policy rate
U.S. is trying to go it alone among global central banks, which you can do but need strong data behind you
Need to question how far can push yield curves given global environment
Inflation breakevens suggest fed is being too hawkish

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.

GBP/USD recovers above 1.3200 as USD loses traction

GBP/USD is rebounding toward 1.3250 in the European session on Monday. The pair recovers ground as the US Dollar uptrend falters and traders resort to profit-taking ahead of Tuesday's US-Iran peace talks and Fed Chair Kevin Warsh's appearance on Wednesday at the ECB Forum.

EUR/USD hold gains around 1.1400 amid US Dollar weakness

EUR/USD is attempting a tepid bounce above 1.1400 in European trading on Monday, helped by a broadly weaker US Dollar. Traders continue to assess the developments surrounding talks to end the US war with Iran. The European Central Bank's annual forum and the US June employment data will be the highlights later this week.

Gold stays in red near $4,050 as US-Iran clash revives inflation fears

Gold price remains in the negative territory around $4,050 in Monday's European trading. The bullion struggles as military clashes between the United States and Iran in the strategic Strait of Hormuz have revived inflation concerns, bolstering Fed rate hike expectations. However, a broad US Dollar retreat is helping limit Gold's downside.

Pi Network risks fresh record low as bears tighten their grip

Pi Network price edges lower on Monday, threatening a steeper correction below the all-time low of $0.1184 recorded on June 6. The negative funding rate reaffirms the sell-side dominance as the Pi2Day excitement fades. From a technical perspective, PI continues its bearish spiral, with downside momentum gaining traction despite oversold warnings.

How Kevin Warsh upended the game plan for Gold

Something is breaking inside the Federal Reserve's new strategy, signaling a massive regime change for macro markets. Under the leadership of newly appointed Fed Chair Kevin Warsh, the traditional framework of forward guidance and predictable rate paths could be dismantled soon.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.