While speaking at an economics roundtable at the University of California, San Diego, on Wednesday, John Williams, president of the Federal Reserve Bank of New York, said that the United States (US) economy was in a favourable place and added that they need to keep the economy roughly where it is.
Williams’ comments failed to help the Greenback recover its losses and the US Dollar Index was last down 0.15% on the day at 99.05. Below are some additional quotes, as reported by Reuters.
“Fed sees 2% inflation goal as a symmetric goal; looking ahead the goal is to hit goal most of the time.”
“US economy is very strong if you just look in the rearview mirror.”
“The outlook for the US economy is a mixed picture.”
“Looking ahead there are a number of crosscurrents leading to slower growth.”
“There are a lot of uncertainties, risks ahead to navigate.”
“Direct effects of trade tariffs are relatively modest.”
“Trade uncertainty effects are less well-understood, and situation changes from one week to another.”
“Inverted yield curve understandably gets a lot of attention, but should be careful in drawing conclusions.”
“Part of yield curve inversion due to monetary policy actions by other global central banks.”
“Yield curve does say something about negative investor sentiment about long term growth.”
“Mid-September saw a confluence of events in banking system reserves, payment flows.”
“Comments by the president has no effect on the Fed’s thinking about monetary policy.”
“The adjustment of monetary policy is about where risks are, where economy is going.”
“If Europe is successful using negative rates to create more growth, that will benefit the US.”
“Global economy is not nearly as strong a place as the US economy.”
The EUR/USD pair topped at 1.0963, its highest in three days as concerns about a US recession sent speculative interest away from the greenback. EUR/USD advance limited, correction could extend up to 1.1000.
Despite increasing odds of the UK PM’s Brexit success to grab the October 31 deadline, GBP/USD shows little reaction to the news as the market awaits the EU’s response for further clarity. The Cable stays under pressure.
The USD/JPY pair dropped further during the American session and bottomed at 107.16, hitting the lowest level in a week.
The XAU/USD pair build on Tuesday recovery gains and rose above the critical $1,500 mark before going into a consolidation phase a little below that level.
US stock markets are falling for the second day in a row – and Wednesday’s declines are worse than Tuesday. Safe-haven assets such as the Japanese yen and gold are moving higher.
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