Fed's Jefferson: Inflation is a source of concern
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Federal Reserve Vice-Chairman Philip Jefferson stated on Monday that he advocates maintaining current interest rates until there is evident moderation in price pressures.
Key Takeaways
Economy has made a lot of progress, inflation has retreated’
The labor market has been very resilient.
I view the economy as in a solid position.
The decline in inflation has attenuated.
Inflation is a source of concern.
Is focused even more so on inflation given broader strength.
It is appropriate that we maintain the policy rate in restrictive territory.
Important to look for more evidence inflation is abating.
It is appropriate to keep the policy rate restrictive until clear inflation ebbing.
Market Reaction
The Greenback remains largely on the defensive and promps the USD Index (DXY) to recede to the area of daily lows near the 105.00 neighbourhood on Monday.
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