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.