Statements of Fed officials would be newsworthy if they questioned the rate pause in September – Commerzbank
|Which Fed comments are of interest and which ones are not? Economists at Commerzbank analyze what is relevant for the US Dollar.
It matters to keep an eye on real economic data
It would seem that it is very important for Miki Bowman, a member of the Fed Board of Governors, to get her message across. At least we all heard her on Monday for the second consecutive day: that further rate steps would be required to dampen inflation.
Statements of Fed officials would be newsworthy if they questioned the rate pause in September. However, nobody is likely to do that – certainly not before new inflation data are published. The next publication is due on Thursday.
On the other hand, it matters to keep an eye on real economic data as it will tell us whether and to what extent the economy will slow until November. Only if we know this data, comments like the ones made by Bowman can be relevant for USD exchange rates.
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