Fed’s Waller: Jobs, economic strength give Fed space to hike further


Federal Reserve Governor Christopher Waller conveys his favor for raising rates at July FOMC meeting per the prepared remarks for delivery before a gathering held by The Money Marketeers of New York University shared by Reuters.

The policymaker also showed his hesitance to call an all clear on US inflation and favors more rate rises this year

“The robust strength of the labor market and the solid overall performance of the U.S. economy gives us room to tighten policy further,” said Fed’s Waller.

Fed’s Waller cited example of 2021 summers, when the inflation briefly slowed before getting much worse, to tame the fears emanating from this week’s downbeat US inflation clues.

Additional comments

Fed likely to need two more 25 basis point rate hikes this year.

Banking sector is strong and resilient.

Bulk of past rate hikes already have impacted economy.

Market implications

The aforementioned headlines join the early-Asian session consolidation to allow the US Dollar to take a breather. That said, the US Dollar Index (DXY) licks its wounds near the lowest levels since since April 2022 the previous day, down 2.45% on a week so far, as downbeat inflation clues from the US push back the Federal Reserve (Fed) hawks.

Also read: Forex Today: Dollar's downward spiral continues

Update

Following the initial statements, mentioned above, Reuters unveiled additional comments suggesting that Fed’s Waller flags fears of soft landing while citing the US central bank’s efforts to tame inflation. That said, the policymaker cites job market and economic strength as the biggest victims of rate hikes, per the news.

Fed's Waller also suggests that two more softer prints of the Consumer Price Index (CPI) can flag the policy pivot while also adding that September meeting is a live monetary policy meeting.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 1.1000 ahead of Fedspeak

EUR/USD stays below 1.1000 ahead of Fedspeak

EUR/USD moves sideways in a tight range below 1.1000 on Monday. The data from the Eurozone showed that Retail Sales rose by 0.2% on a monthly basis in August as forecast, failing to boost the Euro. Investors await comments from Fed officials.

EUR/USD News
GBP/USD struggles to recover above 1.3100

GBP/USD struggles to recover above 1.3100

GBP/USD stays under bearish pressure and trades in the red below 1.3100 on Monday, erasing early gains. The pair is undermined by a negative shift in risk sentiment but the downside remains limited as the US Dollar struggles to build on previous week's gains.

GBP/USD News
Gold ranges around $2,650, awaits fresh clues

Gold ranges around $2,650, awaits fresh clues

Spot Gold's consolidative phase continued throughout the first half of Monday after the noisy United States NFP report released last Friday. XAU/USD found near-term demand at the beginning of the week as Middle East tensions undermined the market’s mood.

Gold News
Is “Uptober” here for Bitcoin?

Is “Uptober” here for Bitcoin?

Bitcoin stabilizes at around $63,000 on Monday. US spot Bitcoin ETF experienced outflows week-on-week. NYDIG report highlights that Bitcoin remains the best-performing asset this year, with a 49.2% year-to-date gain. 

Read more
RBA widely expected to keep key interest rate unchanged amid persisting price pressures

RBA widely expected to keep key interest rate unchanged amid persisting price pressures

The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.

Read more
Five best Forex brokers in 2024

Five best Forex brokers in 2024

VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals. 

Read More

Forex MAJORS

Cryptocurrencies

Signatures