Fed Mester comments US monetary policy

Today, US macro data came in mixed. Both import and export prices dropped, but prelim inflation expectations according to University of Michigan risen slightly in both short-term and long-term measures. US consumers cited high prices as a main reason of poor private finances. Also consumer sentiments came in much lower, according to UoM. Loretta Mester, chair of the Cleveland Fed, commented the US monetary conditions and economy today, and we can assume the commentary as some kind dovish after Mester said that it's inappropriate to keep rates unchanged until reaching 2% goal.

Fed Mester

• The labour market is still very strong.: We are in a good position with monetary policy.
• It's important not to wait too long to cut rates.
• I want to see a few more months of ebbing inflation data.
• The neutral interest rate moves around all the time.
• It's inappropriate to keep rates at the current levels until 2%.
• It is clear that monetary policy is affecting the economy.
• We need to see inflation move down for a bit longer.
• We need to see inflation fall more from current levels.
• I am happy to see inflation moving down after Q1 stalling.
• We are starting to see inflation move down again after stalling.
• Inflation data out this week is welcome news.
• The FOMC is doing good work understanding and forecasting the economy.

Futures on US dollar (USDIDX) gains slightly today despite mixed US macro data.

Source: xStation5