July 31, 2024 at 07:00PM
Fed says it’s attentive to risks on both sides of the mandate, a change from previous text that said it was highly attentive to inflation risks
In recent moths there has been ‘some’ further progress to 2% inflation goal vs ‘modest’ further progress previously
Says inflation remains ‘somewhat elevated’
Economy continues to expand at ‘solid’ pace, job gains have moderated, employment rate has moved up but remains low
Repeats that it does not expect to cut until it has gained greater confidence that inflation is moving closer to 2%
Full text
Treasury yields rose a couple basis points across the curve on the release and USD/JPY ticked higher as well. The market was likely looking for something a bit more explicit on cutting in September but I think that was a pipe dream. That said, Powell may give the market what it wants at 2:30 pm in the press conference.
This article was written by Adam Button at www.forexlive.com.
