|

Fed’s Miran: Evidence that oil prices feed into core inflation is quite limited

Stephen Miran, Federal Reserve (Fed) Governor, said that it’s too early to have firm views about the impact the conflict in Iran will have onto the economy in an interview with Bloomberg TV on Wednesday.

Key takeaways

Too early to have firm views about impact on economy of conflict in Iran.

Evidence that oil prices feed into core inflation is quite limited.

This is different than Ukraine invasion in 2022, because monetary and fiscal policy were both more expansionary.

There is a 2-year trend of labor market weakening, and it is too early to reject that based on one or two months of data.

Markets dont seem concerned about long term inflation expectations.

1 pp of cuts appropriate this year.

If housing inflation decelerates as expected the Fed could undershoot the 2% target.

Appropriate to continue to cut at the March meeting; have not changed the outlook based on the outbreak of conflict in Iran.

Would like to continue with quarter-point cuts until the Fed reaches neutral, then reevaluate.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.19%-0.05%-0.30%-0.02%-0.13%-0.40%-0.09%
EUR0.19%0.14%-0.11%0.18%0.06%-0.21%0.10%
GBP0.05%-0.14%-0.27%0.03%-0.08%-0.35%-0.04%
JPY0.30%0.11%0.27%0.30%0.19%-0.09%0.23%
CAD0.02%-0.18%-0.03%-0.30%-0.11%-0.38%-0.08%
AUD0.13%-0.06%0.08%-0.19%0.11%-0.27%0.03%
NZD0.40%0.21%0.35%0.09%0.38%0.27%0.30%
CHF0.09%-0.10%0.04%-0.23%0.08%-0.03%-0.30%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

on

Author

Agustin Wazne

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

More from Agustin Wazne
Share:

Editor's Picks

EUR/USD struggles to regain momentum in the low1.1600s

EUR/USD is giving some signs of life in the aftermath of two severe days of losses on Wednesday, reclaiming the 1.1600 hurdle and above on the back of the resurgence of a mild selling bias around the US Dollar. Moving forward, the usual US weekly Claims will take centre stage on Thursday ahead of Friday’s crucial NFP data.
 

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.

Morgan Stanley files amended S-1 for spot Bitcoin ETF

Morgan Stanley submitted an amended S-1 filing to the US Securities and Exchange Commission on Wednesday, providing additional details on its proposed Bitcoin exchange-traded fund.

First Venezuela, now Iran: The US-China energy war escalates

At first glance, the latest escalation involving the United States with both Iran and Venezuela looks like another chapter in a long-running geopolitical story. But viewed through a broader strategic lens, something else may be unfolding: Energy.

Bittensor extends recovery despite retail demand slump

Bittensor, a leading Artificial Intelligence token, is aging up above $190 at the time of writing on Wednesday. Steady price increases characterise the broader crypto market, with Bitcoin holding above $71,000 and Ethereum above $2,000.