Jobs, economic strength give Fed space to hike further – Crypto News – Crypto News
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Powell delivers a hawkish message, as expected – UOB Powell delivers a hawkish message, as expected – UOB

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Jobs, economic strength give Fed space to hike further – Crypto News

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Federal Reserve Governor Christopher Waller conveys his favor for raising rates at the July FOMC meeting, per the prepared remarks for delivery before a gathering held by The Money Marketeers of New York University shared by Reuters.

The policymaker also showed his hesitation to call an all clear on US inflation and favors more rate rises this year.

“The robust strength of the labor market and the solid overall performance of the US economy give us room to tighten policy further,” said Fed’s Waller.

Fed’s Waller cited the example of summer 2021, when inflation briefly slowed before getting much worse, to tame the fears emanating from this week’s downbeat US inflation clues.

Additional comments

Fed likely to need two more 25 basis point rate hikes this year.

Banking sector is strong and resilient.

Bulk of past rate hikes have already impacted the economy.

market implications

The aforementioned headlines join the early-Asian session consolidation to allow the US Dollar to take a breather. That said, the US Dollar Index (DXY) licks its wounds near the lowest levels since April 2022 the previous day, down 2.45% on a week so far, as downbeat inflation clues from the US push back the Federal Reserve (Fed) hawks .

Also read: Forex Today: Dollar’s downward spiral continues

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