FOMC members Susan Collins and Raphael Bostic commented the US monetary policy yesterday. Here is the highlight from their speeches.
Collins
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Create account Try a demo Download mobile app Download mobile app- The data shows the economy is strong and resilient.
- Restrictive monetary policy has helped cool inflation.
- Unemployment still historically low, job growth solid.
- Core inflation has moderated, but is still elevated.
- It is important for the Fed to preserve healthy labor market conditions.
- I am more confident inflation is on a durable path of ebbing.
Bostic
- Shifts in supply chains means business cost structures will also change, something Fed will need to understand.
- Hurricanes Helene and Milton potentially have significant implications for the economy over the next three to six months.
- Businesses say that consumers have become much more price sensitive, curbing their ability to raise prices.
- There is a risk that the economy is too strong, and could hamper policy recalibration.
- till laser-focused on inflation, but the job market is also salient.
- Inflation rate is still quite a ways above 2%.
- The economy is close to the Fed's targets and is moving closer.
- Monthly job creation is above what is required to account for population growth.
- Labor market has slowed down, but it's not slow or weak.
Overall tone of Collins and Bostic pointed to strong US economy, but both members are quite sure, that the inflation is under Fed's control, on a way to 2% target, even despite still strong US labor market data. However, risk of the 'too strong' economy persists, but it's not any surprise to financial markets. EURUSD is still traded below 1.10 resistance zone, but a pair try to rebound after reaching 1.095 support, near 61.8 Fibonacci retracement of the upward wave, started in August.
Source: xStation5
