Fed Chair Jerome Powell testimony to Congress 27 February 2018

  • Gradual Reduction Of Monpol Will Sustain Strong Labor Market While Fostering A Return Of Inflation To 2 Percent
  • Median FOMC “Dot Plot” Sees Year-End Federal Funds Rate Rising Gradually Over The 2018-2020 Period. Median Projection For End Of 2018, 2.13%
  • Upbeat Growth Will Likely Continue To Boost Business Investment, Economic Outlook Remains Strong
  • Moderate Wage Gains Likely Reflect The Offsetting Influences Of A Tightening Labor Market And Persistently Weak Productivity Growth
  • Medium Term Inflation On A 12-Month Basis To Move Higher And Stabilize Around FOMC´S 2 Pct Target Over
  • FOMC Views Some Of The Inflation Shortfall Over Last Year As Reflecting Transitory Influences
  • Month-On-Month Prices Data A Little Higher Toward The End Of The Year Than In Earlier Months.
  • Econ Activity Abroad Has Been Solid In Recent Quarters And Associated Strengthening Of Demand For U.S. Exports
  • Inflation Remains Below The 2% Longer-Run Objective
  • Anticipate That Inflation On A 12-Month Basis Will Move Up This Year And Stabilize Around The FOMC’s 2 Percent Objective Over The Medium Term.
  • Continue To View Some Of The Shortfall In Inflation Last Year As Likely Reflecting Transitory Influences That We Do Not Expect Will Repeat
  • Continue To Monitor Inflation Developments Closely
  • Fiscal Policy Is Becoming More Stimulative
  • Wages Should Increase At A Faster Pace As Well

Not much we hadn’t already heard from the Fed at the last FOMC. The dollar ticked around 20/25 pips higher in a few pairs but nothing shocking. If anything, the softer durables should start to weigh on the buck after the algos have finished with Powell.

Ryan Littlestone

Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”

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Ryan Littlestone

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