US dollar Analysis and news
- US PCE meets estimates, market reaction is muted
- The US dollar hovers around 93.00 in front of Powell
USA PCE According to estimates, the market reaction is muted
The latest PCE key figures have been printed in line with the consensus, at an annual rate of 3.6%, which is also in line with the revised figure for the previous month. While the data is important, the market reaction has understandably been silenced given traders’ attention to the upcoming speech by Fed chairman Powell at the Jackson Hole symposium. Click for more information on the Jackson Hole Symposium here.
Fresh Fed comment
Fedi Kaplan says that he does not see anything at the moment that would change him significantly, his business contacts are suffering at least as well as Delta.
Fedi Bullard says it wants to continue narrowing this year. Reiterates its desire to complete the downsizing by the end of the first quarter of 2022.
Fedi George says the Fed should start tightening QE this year; the economy has made good progress, inflation is strong and suggests QE call back, but has not seen a full recovery in the labor market.
Fedi Bostic says it makes sense to cut bond purchases from October if US job growth remains strong. Significant progress in starting to reduce bond purchases would have been met if job growth in August had been similar to that in June / July. (Reminder, June and July NFP on average 896.5 thousand).
Fedi Harker says there is some evidence that inflationary pressures may not be so temporary.
The US dollar hovers around 93.00 in front of Powell