Chicago Fed President Charles Evans said on Friday “We are probably going to have a slightly higher peak to Fed policy rate even as we slow pace of rate hikes,”, as reported by Reuters.Evans noted that policymakers are “on a path to getting financial conditions appropriately restrictive to bring inflation …
Read More »Fed’s Evans, Waller, Mester Sang Same Hawkish Battle Song
On Thursday, Fed speakers kept singing the same battle rhyme. Loretta Mester said the US central bank has more work to do to tame inflation and she has not seen the evidence needed to convince her that the policymakers can slow the pace of interest rate hikes as investors expect …
Read More »Fed’s Evans prefers to rate hike pause
Federal Reserve Bank of Chicago President Charles Evans said, on Thursday, that policymakers could deliver a third straight jumbo increase in interest ratesat the next FOMC meeting on September 20-21, but he is opened minded between a 50 or 75 basis point hike. The US dollar index and shorter-dated US …
Read More »Market Drivers – US Session – Tuesday, August 2
Risk-aversion came back benefitting the US dollar that is widely considered as a safe haven. US-Sino tensions arose on the arrival of US House Speaker Nancy Pelosi to Taiwan. Pelosi supports the local government against China’s will.Crude oil prices, on the other hand, recovered some ground and the barrel of …
Read More »Fed’s Evans: I don’t see the need for larger than 50 bps rate hikes
Chicago Fed President and FOMC member Charles Evans on Tuesday pushed back against the idea of larger than 50 bps rate hikes at upcoming Fed meetings, saying that he doesn’t see the need for them, reported Reuters. Evans said he is comfortable with a rate hike path this year that …
Read More »USD/CAD Struggles Amid Firm US Dollar
The USD/CAD trims Monday’s losses and stages a comeback, soaring in the North American session above the 1.2600 mark, approaching the 50-day moving average (DMA) at 1.2651. The USD/CAD is trading at 1.2625.Market sentiment and hawkish Fed lifted the USD/CAD above 1.2600. The market sentiment remains mixed. European equities are …
Read More »Fed’s Evans: High prices will persist for longer than I thought, but won’t be permanent
Chicago Fed President and FOMC member Charles Evans on Monday said that high prices in the US will persist for longer than he originally though, though will not be permanent, reported Reuters. The Fed has to reposition itself in its response, he said, noting that supply chain pressures are more …
Read More »Fed’s Bostic: Fully appropriate to move policy closer to neutral, but cautiously
Atlanta Fed President Raphael Bostic said on Thursday that while it is fully appropriate that the Fed move policy closer to a neutral position, it should do so in a cautious way.It’s going to take longer than initially thought for supply chain issues to resolve, he added, noting that the …
Read More »Fed’s Evans: Hiking under 2.5% by March 2023 gives Fed “optionality”
Chicago Fed President and FOMC member Charles Evans on Friday said that raising interest rates to just under 2.5% by March 2023 gives the Fed “optionality”. It is not a big risk if that rate-hike path includes “some” 50 bps hikes to get to the neutral rate sooner.Monthly inflation reports …
Read More »US Dollar Benefits From Higher Treasury Yields
The US dollar climbed against its most major counterparts in the New York session on Friday, as US treasury yields rose amid growing expectations that the Federal Reserve will tighten monetary policy aggressively to curb high inflation.The benchmark yield on the 10-year treasury note spiked up to 2.462 percent. Yields …
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