In its Semiannual Monetary Policy Report released on Friday, the Federal Reserve (Fed) said it has seen modest further progress in inflation this year, but added that it still needs more confidence before moving forward with rate cuts, according to Reuters.
Highlighted statements
“Labor supply and demand resemble the period just before the pandemic, when the labor market was relatively tight but not overheated.”
“Housing-related inflationary pressures are expected to gradually ease.”
“Despite improvements, significant disparities still exist in the labor market.”
“Financial conditions appear somewhat tight overall, with the pace of bank lending somewhat tepid.”
“The financial system remains strong and resilient, although parts of banks’ commercial real estate portfolios are facing stress.”
“Liquidity at most domestic banks remains ample.”
“Valuations are high relative to fundamentals across major asset classes.”
Market reaction
The Dollar Index showed no immediate reaction to this release and was last seen losing 0.1% on the day at 105.03.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
