Fed's Bostic: The timing for a rate cut remains uncertain

Source Fxstreet
May 10, 2024 10:51

According to an interview with Reuters, Atlanta Federal Reserve President Raphael Bostic suggested that the Fed is probably still planning to reduce interest rates this year, despite uncertainty regarding when and by how much policy easing will occur, as well as the gradual pace of inflation declines.

Key Quotes

Most firms say pricing power is at or near its limit, with wage growth moving to pre-pandemic levels.

Optimistic disinflation will continue, though the path back to the Fed's 2% target may take until late next year or early 2026.

He is thinking less about the extent of rate cuts this year and more about getting the timing right for the start of easing.

Job growth needs to slow to be consistent with the 2% target, though that does not mean unemployment will spike.

Gain of 175,000 jobs in april may be low for pandemic-era, but still above what economy needs to account for population, labor force growth.

Market Reaction

The Greenback keeps its slight buying bias in the low 105.00s when tracked by the USD Index (DXY) ahead of the release of the advanced Michigan Consumer Sentiment and speeches by Bowman, Barr and Goolsbee.

US Dollar PRICE Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the British Pound.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   -0.03% 0.08% -0.17% -0.02% -0.15% -0.32% -0.09%
EUR 0.03%   0.10% -0.17% -0.01% -0.12% -0.31% -0.05%
GBP -0.08% -0.10%   -0.25% -0.12% -0.21% -0.39% -0.15%
JPY 0.17% 0.17% 0.25%   0.07% -0.01% -0.16% 0.08%
CAD 0.02% 0.01% 0.12% -0.07%   -0.12% -0.29% -0.04%
AUD 0.15% 0.12% 0.21% 0.01% 0.12%   -0.17% 0.06%
NZD 0.32% 0.31% 0.39% 0.16% 0.29% 0.17%   0.24%
CHF 0.09% 0.05% 0.15% -0.08% 0.04% -0.06% -0.24%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Lagarde speech: Inflation to fluctuate around current levels for rest of yearChristine Lagarde, President of the European Central Bank (ECB), explains the ECB's decision to cut key rates by 25 basis points in June and responds to questions from the press.
Source  Fxstreet
Christine Lagarde, President of the European Central Bank (ECB), explains the ECB's decision to cut key rates by 25 basis points in June and responds to questions from the press.
placeholder
US JOLTS Preview: Job openings expected to inch lower in AprilThe Job Openings and Labor Turnover Survey (JOLTS) will be released on Tuesday by the US Bureau of Labor Statistics (BLS).
Source  Fxstreet
The Job Openings and Labor Turnover Survey (JOLTS) will be released on Tuesday by the US Bureau of Labor Statistics (BLS).
placeholder
Stock Market Today: Nifty opens at record highs, cheers a likely PM Modi third termNifty 50, India’s key benchmark index, firmed up to hit a new record high above 23,300 at the open on Monday, snapping the previous week’s 2% decline.
Source  Fxstreet
Nifty 50, India’s key benchmark index, firmed up to hit a new record high above 23,300 at the open on Monday, snapping the previous week’s 2% decline.
goTop
quote