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 clings to daily gains near 1.3550

GBP/USD adds to Friday’s advance, briefly hitting three-month tops near 1.3570 before edging lower on Monday. Fading expectations of a Fed rate hike in September weigh on the Greenback, helping Cable to keep its bullish momentum ahead of the release of the UK jobs report on Tuesday.

EUR/USD: Gains appear capped by 1.1600

EUR/USD consolidates its daily gains well north of the 1.1500 hurdle following the closing bell on Wall Street on Monday. The pair’s multi-day bounce comes on the back of renewed selling pressure on the US Dollar investors continue to trim bets of Fed rate hikes. Moving forward, Germany’s ZEW prints are due on Tuesday alongside a slew of US hard data.

Gold loses some traction, still above $4,400

Gold faces some loss of momentum and slips back toward the vicinity of the $4,400 mark per troy ounce on Monday. The yellow metal adds to Friday’s uptick and its positive performance follows the steady offered stance in the US Dollar amid dwindling bets for further tightening by the Fed in the next few months.

Strategy pauses Bitcoin sales, increases USD Reserve to $4.8 billion

Bitcoin (BTC) treasury firm Strategy (MSTR) increased its USD Reserve to $4.8 billion after raising $333.7 million through common stock sales, while also repurchasing $132.2 million of its STRC preferred shares, according to a Form 8-K filing on Monday. Strategy sold 3.458 million shares of its Class A common stock, MSTR, last week, generating $333.7 million in net proceeds.

Economists agree: Fed to leave interest rates unchanged this year – Reuters poll

A large majority of economists expect the Federal Reserve (Fed) to keep interest rates unchanged in September and for the rest of this year, according to a Reuters poll conducted between August 12 and 17.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.