Fed Bostic and Daly comments US economy. USDIDX gains 0,5%

Mary Daly and Raphael Bostic of the Federal Reserve commented today on the state of monetary policy and the US economy. USDIDX is gaining 0.5%.

Fed Bostic

• I am in favor of no rate hikes until the end of the year. PCE inflation can reach the target at the end of 2024, Maybe in 2025.
• Inflation has dropped significantly, but reaching 2% is difficult. I expect financial standards to tighten by summer.
• Credit risk is likely to come, and real estate could be a threat.
• I expect the unemployment rate to rise from historically low levels. The banking sector is quite strong.

Fed Daly 

• The risks of insufficient and excessive tightening are more or less balanced.
• It is reasonable to slow the pace of policy tightening as the target approaches
• I strongly support the June decision to hold rates and watch the data
• Two rate hikes this year is a very reasonable forecast but not certain
• The credit tightening so far is in line with what one would expect even without the March banking turmoil
• I remain vigilant about additional tightening; this is a good time to slow the pace of rate hikes.
• Inflation expectations and the frequency and magnitude of price changes are in a downward trajectory

Source: xStation5