Fed officials continue more hawkish rhetoric – MUFG

By FXStreet Lee Hardman, Currency Analyst at MUFG, notes that the US dollar has weakened modestly in the Asian trading session giving back some of the strong gains from late last week prompted by the hawkish shift in the Fed’s policy communication.

Key Quotes

“The hawkish shift was again evident in comments over the weekend from Boston Fed President Rosengren, a voting member on the FOMC this year, who stated that the US is on the verge of meeting most of the economic conditions that the Federal Reserve has set to increase rates next month.

More specifically he stated that the Fed has set a “relatively low threshold” for improvement on the growth front following weak growth in Q1. Employment growth was described as still “well above” what was needed for a gradual tightening of the labour market. He also stated that the US was “making progress on getting to inflation at 2%”. As the US economy is closer to full employment and inflation to their target, he is more confident now that a more normalised situation makes sense”. If the data continues to prove satisfactory, he would favour voting for a rate hike in June. …read more

Source:: FX Street