There is movement at the Federal Reserve, as indicated by Powell on Thursday, when he could get word in on policy:
- Fed’s Powell: Economy isn’t sending signals that we need to be in a hurry to cut
- the interviewer is asking non-stop political questions. Powell basically had to straighten her out
Goolsbee spoke on Friday:
trying to revert to dove mode:
- interest rates will be “a lot” lower over the next 12-18 months
but having to throw in the strong caveat:
- “As long we keep making progress toward the 2% inflation goal”
He spoke later on Friday also:
- thinks interest rates will come down along the lines seen in the recent dot plot projections
- said the current rate of inflation is “too high” to stay where it is for an extended period
He added that strong economic growth is not necessarily signalling the economy is overheating, citing productivity gains over the last year. Said that this rising productivity allows for faster economic growth without generating additional inflation”
This article was written by Eamonn Sheridan at www.forexlive.com. Source