Powell Repeats Far Away From Fed Targets, USD Rises Along With Yields

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While speaking at the Wall Street Jobs Summit on Thursday, FOMC President Jerome Powell, reiterated that they are still very far from the inflation and employment targets of the Federal Reserve.

Market reaction

With the initial market reaction, the 10-year US Treasury yield turned positive on the day and the US dollar index rose to 90.15, where it was up 0.2% on the day.

Additional declarations

“While there are still risks, there are good reasons to expect job creation to pick up in the coming months.”

“As the economy recovers, inflation is expected to rise.”

“Deep-seated low inflation expectations are unlikely to change.”

“Increases in inflation are more likely to be unique.”

“The Fed will use its tools to achieve the inflation target.”

“It will take some time to get back to peak employment.”

“There is a lot of ground to cover to get back to maximum employment.”

“We have a high standard for identifying maximum employment, it will take some time to get there.”

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