With the recent rise in US Treasury yields, there is no need for additional tightening by the Federal Reserve, the Federal Reserve stated on Thursday. president of the San Francisco Federal Reserve, Mary Dalyduring his speech at the Economic Club of New York.
Featured Statements
“The economy continues to have considerable momentum.”
“We are very far from 2% inflation, and very far from sustainable employment.”
“Even with the recent slowdown in the labor market, job growth remains well above what is needed to maintain the pace of growth.”
“It is possible that the slowdown so far will translate into a steady march towards the objectives.”
“There are real risks in inflation forecasts.”
“We will need to see progress on superinflation to be confident that we are on the 2% path.”
“If we continue to see the labor market and inflation cool, we can keep rates stable.”
“If financial conditions remain tight, that reduces the need for further Fed action. But if cooling inflation stalls or financial conditions ease, further rate hikes will be necessary.”
“You have to keep an open mind, have options on rates.”
“I don’t see dysfunction in the markets right now.”
“The markets have a better sense now, I think, about the Fed’s reaction function – that we want to get inflation down to 2%.”
“We are not in a spiral of prices and wages.”
“Short-term inflation expectations have fallen, and that releases wage pressure.”
Market reaction
The US Dollar (USD) remains under modest bearish pressure in the American session. At the time of writing, the USD index lost 0.3% on the day, settling at 106.45.
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.
