Fed's Waller: Should remove easing bias from statement
Federal Reserve (Fed) Governor Christopher Waller said on Friday that he does not expect to support a change in the policy rate in the near term, adding that the outcome will depend heavily on the length of the Iran conflict, per Reuters.
Key takeaways
"Labor market in balance and no longer the chief concern in determining path of policy."
"Should remove easing bias from statement, though not advocating a hike at this point."
"Concerned about rising expectations as Fed's inflation miss enters sixth year."
"If expectations start to become unanchored would not hesitate to support a rate hike."
"Inflation at risk of becoming more persistent, with price pressures broadening."
"So far high energy costs have not crimped consumer."
Market reaction
The US Dollar (USD) preserves its strength following these comments. At the time of press, the USD Index was up 0.2% on the day at 99.38.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Deutsche Bank: The bursting of the AI bubble may become the biggest systemic risk in the market next year; U.S. Treasury bonds are expected to attract safe-haven funds.
George Saravelos, Global Head of FX Research at Deutsche Bank, stated that since the beginning of this year, global investors' pessimism toward the bond market has become excessive. He believes the market may be underestimating the likelihood of large-scale capital flows into the bond market if significant risks emerge in the artificial intelligence industry.
Risks Hidden Behind S&P 500 Record Highs: Most Constituent Stocks Underperform, Rising Oil Prices and U.S. Treasury Yields Intensify Market Divergence
Persistently high oil prices and borrowing costs are impacting the bond, credit, and small-cap stock markets, while the strong performance of large technology stocks is masking the increasingly evident divergence within the U.S. stock market.
Elon Musk continues one-sided Ambani beef, mocks him in viral X post
Nobel laureate warns: French debt crisis may be "too big to save," eurozone faces "explosive" crisis
France's debt has reached €3.6 trillion, accounting for 119% of its GDP—the highest level since the creation of the euro. Paul Krugman, the 2008 Nobel Prize winner in Economics, warned that France is on a path of "fiscal unsustainability" and may have gone from "too big to fail" to the dangerous position of being "too big to be rescued." Its eurozone membership could trigger an "explosive debt crisis" and deliver a destructive blow to European integration.
Crypto prices
More
