Fed’s Paulson: Cautiously optimistic on inflation moving back to target

Agustin Wazne FXStreet

President of the Federal Reserve (Fed) Bank of Philadelphia Anna Paulson said on Wednesday that she sees further rate cuts later this year if the forecast meets their expectations. In a speech at the Chamber of Commerce for Greater Philadelphia, Paulson added that inflation should be around 2% by year-end.

Key takeaways

Sees further rate cuts later this year if forecast met.

Inflation should be around 2% run rate by year end.

Monetary policy ISA little restrictive right now.

cautiously optimistic on inflation moving back to target.

Baseline economic outlook is pretty benign.

In 2026, I'm seeking greater clarity on what's driving the job market.

The US is likely to grow around 2% this year.

In 2026, expects inflation to moderate, job market to stabilise.

Not everyone is doing great in the US economy right now.

The job market is bending but not breaking right now.”

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 Australian Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.08%	-0.18%	-0.54%	-0.03%	0.01%	-0.12%	-0.12%
EUR	0.08%		-0.11%	-0.44%	0.05%	0.09%	-0.04%	-0.04%
GBP	0.18%	0.11%		-0.34%	0.16%	0.20%	0.07%	0.07%
JPY	0.54%	0.44%	0.34%		0.51%	0.55%	0.41%	0.42%
CAD	0.03%	-0.05%	-0.16%	-0.51%		0.05%	-0.09%	-0.09%
AUD	-0.01%	-0.09%	-0.20%	-0.55%	-0.05%		-0.13%	-0.13%
NZD	0.12%	0.04%	-0.07%	-0.41%	0.09%	0.13%		0.00%
CHF	0.12%	0.04%	-0.07%	-0.42%	0.09%	0.13%	-0.00%

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).

Author

Agustin Wazne

FXStreet

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

GBP/USD climbs to four-day highs near 1.3250

GBP/USD rapidly reverses Friday’s small losses and challenges the 1.3250 level, or four-day tops, at the beginning of the week. Cable’s upside comes on the back of further loss of momentum in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD extends the advance past 1.1400

EUR/USD starts the week on a positive note, trading above 1.1400 on Monday as broad-based US Dollar weakness lends support to the pair. In the meantime, investors continue to monitor developments surrounding efforts to end the US-Iran conflict, while attention gradually shifts to the ECB's annual forum and the US NFP data.

Gold falters just ahead of $4,100

Gold remains under modest bearish pressure just above the key $4,000 mark per troy ounce on Monday. The yellow metal struggles to extend its recent gains as renewed effervescence in the Middle East revives inflation concerns and bolsters Fed rate hike expectations.

Bitcoin four-year cycle: BTC risks 75% drawdown with four months of bear market still ahead

Bitcoin price continues to trend downward below the $60,000 support zone after losing over 50% of its value since the $126,199 high in October. Bitcoin’s four-year cycle, measured from cycle tops to bottoms, suggests that four months of a bear market are still ahead.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.