Quite strongly believe that we have to sustainably get inflation back to 2%There is still work to do on thatWe’ve seen some cooling in labour market conditions but it is still generally pretty strongOn the NFP revision, “it doesn’t change a lot” to the outlookRates are not overly restrictiveThere is room to consider where we go from here
It’s not exactly the type of softer language that markets would like to be hearing from the Fed. The narrative that traders want right now is that ‘labour market is bad, we want rate cuts now’. So, this doesn’t quite fit with that. USD/JPY is now up just above 146.00 with 10-year Treasury yields at the highs for the day at 3.835% – up by 6 bps.
This article was written by Justin Low at www.forexlive.com.
