Fed's Mester: "Pace of 2018 rate hikes should be similar to 2017"

Ross J Burland FXStreet

Cleveland Federal Reserve Bank President Loretta Mester has crossed the wirses and has said that the pace of rate hikes in 2018 should be similar to 2017's.

Key statements:

Says rate hike path gives inflation time to rise, while avoiding build-up of risks.
Sees unemployment falling below 4 pct this year, inflation rising to 2 pct in next one to two years.
US tax cuts will add 0.25 to 0.5 pctge point to GDP growth this year and next, possibly more.
Mester says difficult to estimate long-run impact on growth from tax changes.
Says further US interest rate hikes in 2018 and 2019 'appropriate'.
Pace of rate hikes should be similar to 2017, when Federal Reserve raised rates three times.
Says she expects GDP growth of 2.5 pct this year.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.