Fed’s Barkin: Would support rate cuts when there is conviction inflation is heading down
|“Fed is still a ‘good way away’ from the 2% inflation target,” said Thomas Barkin, President of the Federal Reserve Bank of Richmond.
Key statements
Will not prejudge July meeting.
The question of how much slack is needed to lower inflation is "the fundamental question" the Fed needs to dig into.
A lot of pandemic era forces still countering fed tightening, including excess savings, housing and asset wealth, fiscal spending.
Does seem that demand is weakening.
Market reaction
The news fails to inspire the US Dollar bulls amid broad hawkish concerns versus the latest dovish remarks from the Fed policymakers. Even so, the US Dollar Index (DXY) defends the previous day’s bounces off a six-week low, around 102.40 by the press time.
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