“It now appears that the balance of risks to inflation and unemployment has shifted,” the Fed said on Thursday. President of the St. Louis Federal Reserve, Alberto Musalemand added: “The moment when an adjustment to a moderately restrictive policy may be appropriate could be near..”
Key points
“Monetary policy is moderately restrictive.”
“In the absence of further shocks, inflation appears to have returned to a path consistent with 2% over time.”
“Services and housing inflation remains somewhat persistent.”
“There is still work to be done on disinflation.”
“The labor market is no longer overheated.”
“Signs of cooling in the labor market, but layoffs remain low.”
“Recent data has reinforced my confidence in inflation.”
“The risks on both sides appear more balanced.”
Market reaction
The US dollar remains strong following these comments. At the time of writing, the USD index was up 0.5% on the day at 103.06.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
