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5:15 PM · 12 January 2023

Bullard wants rates above 5.0%. Dollar unimpressed

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Fresh comments from FED's Bullard did not provide much support for USD:

  • Growth in Q4 will be stronger than expected

  • The economic outlook is better than assessed just a few weeks ago

  • It is good that inflation is falling, but it remains too high

  • Inflation will fall thanks to the monetary policy that is currently appropriate

  • It is difficult to assess how the unemployment rate is expected to rise from current levels, the labor market is extremely strong

  • To avoid the 1970s scenario,  Fed must maintain rates at high enough levels to make sure inflation moves down

  • Interest rates must be raised above 5% - as soon as possible

  • There's possibly too much optimism that inflation will come easily back to 2%

EURUSD does not react to Bullard comments, as he is known for his hawkish approach. Main currency pair oscillates slightly below session highs around 1.0840. Source: xStation5


 
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