Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari noted on Tuesday that while the Fed has many reasons to feel confident about its long-running battle with transitory inflation, it still may be too soon to declare outright victory. Key US Consumer Price Index (CPI) figures expected in the midweek are anticipated to show a slight upswing in annualized headline inflation figures.
Key highlights
I continue to be surprised by US economic resilience.
It looks like the strong labor market and the strong economy will continue.
The Fed won't model Trump policies' effect on economy until they become clear.
The tariff is a one-time increase in prices, that's not inflationary in itself.
I don't want to declare victory on inflation, but good reason for confidence.
It may take a year or two to get all the way down to 2% inflation given dynamics in housing.
The robust labor market is encouraging and the economy looks in strong position.
If inflation surprises to upside before December, that might give us pause.
In a higher productivity environment, neutral rate is higher, meaning the Fed has less room to cut.
We are modestly restrictive.
The bar of stopping the Fed balance sheet runoff is quite high.
The Fed has a ways to go before it stops shrinking its balance sheet.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD gains ground above 1.0300 ahead of EU/ German data
EUR/USD regains ground above 1.0300 in the European session on Monday. A broadly subdued US Dollar offset a negative risk sentiment, weighing on the pair. Traders now shifts their focus to the EU Sentix data and Germany's inflation report for frresh trading impetus.
GBP/USD rises to near 1.2450 amid softer US Dollar
GBP/USD finds demand and retakes 1.2450 in European trading on Monday. The pair benefits from the US Dollar's sluggish performance even though risk sentiment remanis tepid at the start of the US Nonfarm Payrolls week. Mid-tier US data remains on tap.
Gold price extends its steady descent to around $2,630
Gold price attracts some follow-through sellers at the start of a new week and retreats further from a nearly three-week high, around the $2,665 region touched on Friday. The prospects for slower Fed rate cuts in 2025 keep US Treasury bond yields elevated, undermining the non-yielding yellow metal.
Bitcoin, Ethereum and Ripple show signs of bullish momentum
Bitcoin’s price is approaching its key psychological level of $100,000; a firm close above would signal the continuation of the ongoing rally. Ethereum price closes above its upper consolidation level of $3,522, suggesting bullish momentum. While Ripple price trades within a symmetrical triangle on Monday.
Week ahead – US NFP to test the markets, Eurozone CPI data also in focus
King Dollar flexes its muscles ahead of Friday’s NFP. Eurozone flash CPI numbers awaited as euro bleeds. Canada’s jobs data to impact bets of a January BoC cut. Australia’s CPI and Japan’s wages also on tap.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.