Esther George of the Federal Reserveexplained that the Fed must restore price stability, “which means going back to 2% inflation.”
He also said that markets may have a different view of what the Fed should do, but that the central bank’s commitment is 2%.
His comments follow today’s economic data, specifically the Producer Price Index and Retail Sales. The data showed disinflationary tendencies and reinforced expectations that the Fed will continue to reduce its pace of tightening in the coming meetings.
US dollar update
The Fed’s Beige Book is coming out soon, and Patrick Harker will also be speaking on economics; both data could be a catalyst for the dollar, which has been rocked by mixed feelings about the Fed today. The data has prevented a dollar sell-off, but moves in the currency market have faded on comments hard line the functionaries from the fed.
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.