Fed’s Evans: US monetary policy needed some "repositioning" to align against risks

Dhwani Mehta FXStreet

Chicago Federal Reserve Bank President Charles Evans said on Tuesday, the US monetary policy needed some "repositioning" to align against risks.

Additional Quotes:

US consumer spending strong amid tight labor market, faster wage growth.

US business sector has softened due to weak global demand, uncertainty over trade.

Sees 2.25% US gdp growth in 2019, US unemployment to stay at current level for some time.

Projects US inflation to rise to 2% target, slightly overshoot it over next few years.

US economic fundamentals "solid," costly risks "pronounced," progress on inflation "disappointing".

After rate cuts Fed should leave policy on hold "for some time".

There is a limit to what monetary policy can accomplish.

Sustainable US annual economic growth is about 1.75%.

Uncertain, hostile trade climate may weigh further on potential growth.

Fed has to have a "do-whatever-it-takes" approach to meeting mandates, especially 2% inflation goal.

Engineering modest inflation overshoot would not be policy error in current situation.

The USD Index holds the upside near 2.5-year highs on Evans’ comments, as the bulls regain the 99.50 barrier.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD recovers modestly, stays below 1.1900

EUR/USD gains traction and edges higher toward 1.1900 in the second half of the day on Thursday. The US Dollar struggles to benefit from the upbeat employment data following an initial positive reaction, allowing the pair to find a foothold.

GBP/USD holds above 1.3600 after UK data dump

GBP/USD clings to moderate gains above 1.3600 following the release of the UK Q4 preliminary GDP, which showed that the UK economy expanded at an annual pave of 1% in Q4. Meanwhile, the improving risk mood causes the USD to lose interest and helps the pair edge higher.

Gold retreats from February highs, holds above $5,000

Gold corrects lower after touching a fresh February-high above $5,100 but manages to hold comfortably above $5,000. The positive shift seen in risk mood limits the safe-haven precious metal's strength, while the trading action remains choppy ahead of Friday's key US inflation data.

LayerZero Price Forecast: ZRO steadies as markets digest Zero blockchain announcement

LayerZero (ZRO) trades above $2.00 at press time on Thursday, holding steady after a 17% rebound the previous day, which aligned with the public announcement of the Zero blockchain and Cathie Wood joining the advisory board.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.