After the Fed Neel Kashkari comments, Lorie K.Logan, CEO of the US Federal Reserve Bank of Dallas. commented Fed policy and interest rates in the US. Logan's remarks on Wednesday were prepared before release of October US CPI reading.
- The rise in bond yields in part reflects a rise in term premiums; if the rise continues, the Fed may need a less restrictive policy.
- The labor market is cooling gradually, but not weakening materially.
- Upside risks to inflation and downside risk to employment point to financial conditions posing the biggest potential challenges for monetary policy.
- US central bank most likely will need more interest rate cuts, but should proceed cautiously.
- Models show that the Fed Funds Rate could be very close to the neutral rate.
- If the Fed cuts too far, past the neutral level, inflation could reaccelerate.
- It is difficult to know how many Fed rate cuts may be needed, and how soon they may need to happen.
- The Fed has made a great deal of progress bringing down inflation, restoring balance to the economy.
- The Fed is not quite back to price stability yet, and the US economic activity is resilient.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
