Fed conference - "No hike" comments support US100

• The economy has made considerable progress toward dual goals. Inflation has eased substantially but remains too high
• Inflation is still too high and further progress is not assured.
• The Fed is highly attentive to inflation risks
• We do not expect it will be appropriate to cut rates until we have greater confidence inflation is going back to 2%.
• It is likely that gaining greater confidence will take longer than previously expected.
• So far this year inflation readings have not given us that greater confidence.
• Slowing the pace of QT does not mean our balance sheet will shrink less than it would otherwise.
• The decision to slow runoff will reduce possibility of money market stress.
• We believe over time policy is sufficiently restrictive to bring inflation back down to 2%.  It is unlikely next policy move will be a hike.

US100 is strongly rebounding after comments that hikes are rather not possible.