Fed's Goolsbee remains undecided on September rate decision

Joshua Gibson FXStreet

Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee warned on Friday that while sinking employment data is typically a cause for interest rate cuts, still-high inflation data is still cause for concern, and key Fed officials may not be fully sold on a September rate cut.

Key highlights

Open to criticism on Fed decision-making.
Totally opposed to taking away Fed independence.
Strange to call own move to Fed from CEA after 12 years "sinister" (in reference to Stephen Miran's shift to the Fed board).
Anyone who joins FOMC will take job seriously.

Hiring could be artifically lower due to immigration.
Still undecided on September rate decision.
If we were to start seeing layoffs, we'd be nervous.
We have to look at the inflation side of the Fed's mandate, too.
We want to make sure that the services inflation uptick is a blip.
Fed independence is critical if we don't want inflation.
Sttill think we're likely in the full-employment space.
Shocks are pushing the US in a stagflationary direction.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Week ahead: Stocks seek direction as earnings take centre stage

It has been a challenging week for investors as the hotter US CPI report and the solid start to the earnings season did not produce the expected market movements. With the exception of the aussie, the US dollar is currently posting minimal gains across the FX spectrum, with its post-CPI rally proving short-lived, especially as dovish Fedspeak persists.

CFTC report: Euro and Aussie shorts build as Gold exposure remains elevated

The week in one sentence: Euro shorts deepened, and Yen longs retreated in the week to October 13. In addition, Coffee buying continued, and Gold exposure remained elevated despite another price decline. Speculators turned more bearish on the Euro (EUR), taking net shorts to around 137.6K contracts, the highest level since January 2016.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.