Fed's Waller: Markets are "way out in front"

Federal Reserve Governor Christopher Waller crossed the wires and said Friday's inflation report was "just one data point," and that markets are "way out in front". This is a theme that is gathering pace in the open as per the following article:

US Dollar bulls could start to emerge in the opening sessions

Key quotes

Will need to see a run of CPI reports to take a foot off the brake.
Positive that goods prices came down with some moderation in services, but it needs to continue.
Fed caught "flatfooted" in 2021 when inflation seemed to moderate then "exploded".
7.7% cpi inflation is "enormous," fed still has a long way to go, rates will stay high for a while.
Rates will not fall until there is "clear, strong evidence" inflation is falling.
Starting to see a little softening in the labor market, but the "shocking part" is that strength that remains after rate increases.
"Critical" that u.s. gets inflation down and "fairly quickly" if possible.
So far inflation expectations a couple years out seem to be holding.
US policy rate is "not that high" given level of inflation.;
Rate hikes so far has not "broken anything
The US housing market needed to slow down.
US housing markets "will be okay".
US household balance sheets remain in good shape.
Was always going to be a communications challenge to signal slowdown in the pace of hikes, fed "is not softening".
Signal was to pay attention to the endpoint not the pace of rate increases, and until inflation slows the endpoint is "a ways out".
Fed keeping an eye on the balance sheet, don't want to "crush" holdings in a way that will cause problems in markets
A "benchmark" target may be about 8 to 10 percent of GDP.

US Dollar technical analysis

From a 1-hour perspective the bulls will be on the look out for whether there can be a break in the near-term resistance around 106.90.

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.