Mary Daly and Raphael Bostic of the Federal Reserve commented today on the state of monetary policy and the US economy. USDIDX is gaining 0.5%.
Fed Bostic
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Open account Try demo Download mobile app Download mobile app- I am in favor of no rate hikes until the end of the year. PCE inflation can reach the target at the end of 2024, Maybe in 2025.
- Inflation has dropped significantly, but reaching 2% is difficult. I expect financial standards to tighten by summer.
- Credit risk is likely to come, and real estate could be a threat.
- I expect the unemployment rate to rise from historically low levels. The banking sector is quite strong.
Fed Daly
- The risks of insufficient and excessive tightening are more or less balanced.
- It is reasonable to slow the pace of policy tightening as the target approaches
- I strongly support the June decision to hold rates and watch the data
- Two rate hikes this year is a very reasonable forecast but not certain
- The credit tightening so far is in line with what one would expect even without the March banking turmoil
- I remain vigilant about additional tightening; this is a good time to slow the pace of rate hikes.
- Inflation expectations and the frequency and magnitude of price changes are in a downward trajectory
Source: xStation5
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