Neel Kashkari, a member of the FOMC committee, points out that the pace of balance sheet reduction should be doubled. The FOMC member is in favor of a balance sheet reduction already at a future committee meeting. He supports shrinking the balance sheet as early as the next meeting. Kashkari, is not a voting member until next year also believes inflation is far higher than any of us would like, while the job market has held up remarkably well. To bring supply and demand back into balance, central bank must normalize monetary policy. Despite hawkish remarks, US indices continue to move higher, with both Dow Jones and S&P 500 hit highest levels since mid-February.
US30 managed to break above major resistance at 34000 pts on Thursday which is marked with previous price reactions and 38.2% Fibonacci retracement of the last downward wave. Despite the negative start, upbeat moods prevail today as well and the index is testing local resistance at 34375 pts. Should a break higher occur, the next target for bulls is located around 35040 pts and coincides with 61.8% retracement. Source: xStation5
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