- I have had no contact with the President
- Policy is less-restrictive than when we began cutting
- We don’t need to see further weakening of labor market to achieve our inflation goal
- Assessment on policy hasn’t changed, policy is well-positioned
- We did some ‘language cleanup’ in the opening statement, removal of reference on ‘progress towards inflation goal’ was not meant to send a signal
Dovish comment there in the headline has hurt the dollar but it quickly bounced back because it initially wasn’t clear about whether he was talking about policy now or when he started cutting. He later clarified that he was talking about the restrictive nature of policy when they started cutting. However a second leg of recovery came when he said the removal of the line around progress towards the inflation goal wasn’t meant to send a signal.
This article was written by Adam Button at www.forexlive.com.
