Adriana Kugler, a member of the Federal Reserve Board of Governors signalled today, that fighting with higher inflation in the US may be harder, however further rate cuts are still a 'basic scenario'. Here is the breakdown of Kugler's commentary today.
- Housing and other factors may complicate lowering inflation further.
- If the labor market sputters, it is appropriate to gradually reduce interest rates.
- There's been considerable progress on easing inflation pressure.
- The Fed must be mindful of both sides of mandate right now.
- The US labor market is still resilient, but it has cooled.
- If inflation stalls or picks up, it would be appropriate to pause cuts.
- If the job market slows suddenly, gradual cuts are appropriate.
- We must pay attention to both employment and inflation goals.
- Central bank independence is fundamental to good outcomes.
EURUSD reacted with some upside move after reaching support near 1.05, however the pair still loses more than 0.2% today, while USDIDX gains almost 0.25%. US 10-year Treasury yields are little changed today at 4.44%.
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Source: xStation5
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