EURUSD drops 0.2% 💵Fed Barkin comments monetary policy

Federal Reserve member Thomas Barkin commented US economy and monetary policy today. Here are the higlights:

• Fed cut rates are to recalibrate to a less restrictive position.
• The pace and extent of the rate-reduction cycle requires the Fed to be attentive to how the economy and inflation develop.
• Whilst a low-hiring, low-firing labor market could persist, demand for workers could also move higher if demand expands.
• Recent labor action and geopolitical conflict are also among inflation risks.
• I am watching closely how lower interest rates influence home and auto sales to see if demand risks outrunning supply.
• 50 BPS of cuts shown as the median Fed policymaker projection for the rest of this year would also take a little bit of the edge off rates.
• The Fed can't declare the inflation battle over. I expect little further drop in Core PCE Price Index until next year.
• 50 BPS rate cut in September was warranted because rates were 'out of sync’ with the decline in inflation and the unemployment rate near its sustainable level.
• The US debt level a source of concern over long-term rates

Source: xStation5