What signals have Fed officials sent to market within 24H

“Fed will have to stay ‘super strong’ in its inflation commitment,” said Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic while participating in a conference hosted by the Federal Reserve Bank of Atlanta.

“Fed is ‘far beyond success’ on its employment mandate, a ‘bit of pulling back’ in the aid of lowering inflation is ‘justifiable and appropriate. Wages didn’t fully catch up to inflation in 2022”.

Bostic alos noted that this year another round of raises, less than the previous year. According to him, there is still some way to go until inflation is beaten. As for market’s reaction, given the unimpressive statements and the early hours of the Asian session, market players fail to react to the statements. Even so, the US Dollar grinds higher after reversing the week-start losses.

On his part, Fed’s Goolsbee insisted that “Fear with rising unemployment is that once joblessness starts to rise it ‘goes way up’”. Federal Reserve Bank of Chicago President Austan Goolsbee noted that wages are not a leading indicator of inflation. He sees a chance for getting rid of inflation without a recession.

Even if Fed’s Goolsbee fails to amplify hawkish comments from Atlanta Fed President Bostic, the tone of the statements appears positive for the US Dollar. However, the US Dollar Index (DXY) remains unimpressive as bulls take a breather around 102.70 after reversing the week-start gains.