Fed's Bostic's comments reflect a cautious yet optimistic outlook on the US economy. He anticipates a slowdown in economic activity in the coming months, aligning with a more confident stance from the US Fed on the current economic situation. Bostic emphasizes that the journey to achieving a 2% inflation rate will be challenging but attainable, highlighting the diminishing pricing power among companies. He notes that tighter monetary policies are significantly impacting economic activities, suggesting a continued disinflation trend. Bostic maintains that despite the hurdles, the central bank is on a path to manage and eventually lower inflation rates effectively.
Fed's Barkin presents a more guarded view, noting a slowdown in consumer spending without a significant downturn. He expresses skepticism about price-setters returning to their pre-COVID behaviors and aligns revised consumer spending data with his on-ground observations. Barkin cautions that talks of rate cuts are premature and anticipates that inflation might be more persistent than desired. He acknowledges a forecasting challenge between the markets and the Fed, stressing the need for flexibility in rate adjustments if inflation rises again.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
EURUSD retreats to levels before yesterday's breakout above 1.10. However, the exchange rate still remains above the 61.8% Fibonacci retracement of the last downward move. Maintaining current levels is crucial for the continuation of further upward movement. Source: xStation 5
