Daly is a mouthpiece for Powell and her comments aren’t quite as dovish as some others we’ve heard this week. The real question about the Fed is whether they will adopt a more-neutral or explicitly-neutral stance are the upcoming meeting but she doesn’t sound like she is there yet (though she isn’t far off).
- ‘Should take our time now and remain vigilant’
- Need to better understand what’s happening with the economy and inflation
- Latest data is encouraging
- I’m not thinking about rate cuts at all right now
- Economy needs to cool down a little more
- Further rate hikes are not our ‘base case’
- Hearing more and more it is harder for companies to pass along price hikes
- People’s fear of recession has faded into the background
The US dollar is continuing to rise on these comments, which may be a preview of what Powell says on Friday.
This article was written by Adam Button at www.forexlive.com. Source