Fed's Kashkari: Higher neutral rate means monetary policy may not be as tight as thought

Possibly higher neutral rate means Fed can take more time to assess upcoming data before starting rate cutsThat will entail "less risk" to the economic recoveryCore inflation making "rapid progress" towards Fed's targetBut economic data not "unambiguously positive"There are some signs of weakness including rising consumer delinquenciesFull remarksTreasury yields are rising further to the highs for the day now. 10-year yields are up some 8 bps to 4.11% and that is keeping the dollar in the driver's seat at the moment. This article was written by Justin Low at www.forexlive.com.

Feb 5, 2024 - 19:30
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Fed's Kashkari: Higher neutral rate means monetary policy may not be as tight as thought
  • Possibly higher neutral rate means Fed can take more time to assess upcoming data before starting rate cuts
  • That will entail "less risk" to the economic recovery
  • Core inflation making "rapid progress" towards Fed's target
  • But economic data not "unambiguously positive"
  • There are some signs of weakness including rising consumer delinquencies
  • Full remarks

Treasury yields are rising further to the highs for the day now. 10-year yields are up some 8 bps to 4.11% and that is keeping the dollar in the driver's seat at the moment.

This article was written by Justin Low at www.forexlive.com.
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