- Analytics
- News and Tools
- Market News
- Fed’s Jefferson, Bullard defend current monetary policy, cite high inflation
Fed’s Jefferson, Bullard defend current monetary policy, cite high inflation
Reuters came out with the statements from Fed Governor Philip Jefferson and St. Louis Fed President James Bullard during the weekend, who spoke at a monetary policy conference at the Hoover Institution on Friday. While both the policymakers tried to defend the current monetary actions of the US Federal Reserve (Fed), their inflation outlook keeps the US Dollar buyers hopeful.
Key statements from Fed’s Jefferson
Is inflation still too high? Yes.
Has the current disinflation been uneven and slower than any of us would like? Yes.
But my reading of this evidence is that we are 'doing what is necessary or expected of us,’ which is the dictionary definition of being on track.
Feel the full effects of our rapid tightening are still likely ahead of us.
The string of regional bank failures probably will have only a mild tightening effect on credit conditions.
Important comments from Fed’s Bullard
I find encouraging the recent stablization of inflation expectations near the Fed's 2% target.
The prospects for continue disinflation are pretty good.
Since then the Fed's rate hikes have helped bring down what had been a worrying rise in inflation expectations that, if left unchecked, could have sent actual inflation spiraling out of control.
Monetary policy is now at the low end of what is arguably sufficiently restrictive given current macroeconomic condition.
The bad news for the hawks in the room is, you are barely in the zone" of restrictive-enough policy.
Also read: EUR/USD licks its wounds around 1.0850 with eyes on EU economic projections, US debt ceiling talks
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
