US Fed's Rosengren expects underlying inflation close to 2% over 2018

Author: Mike Paterson | Category: Central Banks

US Fed's Rosengren speaking to Bloomberg tv 13 Oct

  • wages and salaries are going up
  • labour market is tight
  • low jobless, inflation outlook warrants tightening
  • US jobless rate could fall below 4%
  • concern that prolonged low rates spurs reach for yield so that's one reason to normalize rates
  • expects US GDP growth around 2.5% in H2 2017
  • Fed will have to look through hurricane data
  • Fed chair must work with rest of FOMC
  • not expecting US recession in next year or two
But afterwards ? Seems to me once again the CB hawks just want to hike to create some wiggle room for the troubles ahead.

Meanwhile USDJPY 112.17, EURUSD a tad lower at 1.1822 but GBPUSD back up to 1.3292. I did warn of cable dip demand earlier and not to get too greedy !