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Powell opening statement: Inflation has eased substantially but is still too high

Recent indicators suggest economy still growing at a solid paceConsumer spending remains solidGDP has slowed but private domestic final purchases still growing at same pace as H2 2023Labor market has come into better balance but April and May jobs data still strongUnemployment rate ticked up but remains lowA broad set of indicators suggest we’ve returned to where jobs market as on the eve of the pandemic, relatively tight but not overheatedInflation has eased notablyMore-recent readings on inflation have eased somewhat

Reactions to these headlines have been nearly nil, so far.

Repeats that Fed will need greater confidence in inflation to cut rates, though most-recent numbers have showed modest further progressWill need to see more good data to bolster confidence on inflation

There was a bit of USD buying on this.

Policy is well positionedWe will continue to make decisions meeting by meeting

This article was written by Adam Button at www.forexlive.com.

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