Inflation is too low and has been so for quite some time
- Real activity in the U.S. is on a solid footing, which by itself would support a further adjustment in policy.
- Inflation, however, is too low and has been so for quite some time.
- I am concerned that persistent factors are holding down inflation, rather than idiosyncratic transitory ones
- Such a pause in the policy normalization process also would have better allowed the Committee time to assess the progress of incoming inflation data
- Hopefully, it will turn out to be the case that the inflation decline was largely transitory and that a gradual pace of rate increases can eventually take place in a context that delivers greater confidence that inflation will reach 2 percent over the medium term.
the link to the speech
Not much impact on the USD
USDJPY 112.46 saw some demand on the expiries
USDCAD 1.2810 , back to the resit 1.2817
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