Fed's Jefferson: Inflation is a source of concern

Pablo Piovano FXStreet

Federal Reserve Vice-Chairman Philip Jefferson stated on Monday that he advocates maintaining current interest rates until there is evident moderation in price pressures.

Key Takeaways

Economy has made a lot of progress, inflation has retreated’

The labor market has been very resilient.

I view the economy as in a solid position.

The decline in inflation has attenuated.

Inflation is a source of concern.

Is focused even more so on inflation given broader strength.

It is appropriate that we maintain the policy rate in restrictive territory.

Important to look for more evidence inflation is abating.

It is appropriate to keep the policy rate restrictive until clear inflation ebbing.

Market Reaction

The Greenback remains largely on the defensive and promps the USD Index (DXY) to recede to the area of daily lows near the 105.00 neighbourhood on Monday.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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