11 Aug 2015
USD failed to rally on Fischer, Lockhart comments – Deutsche Bank
FXStreet (Edinburgh) - Jim Reid, Analyst at Deutsche Bank, reviewed the recent speeches by Fed’s Fischer and Lockhart.
Key Quotes
“In light of his comments last week which resulted in material moves across the bond market in particular, much of the focus was on the Atlanta Fed President Lockhart”.
“Yesterday was largely a reaffirmation of his view however, saying that ‘I think the point of liftoff is close’ and telling the audience that he is ‘very disposed’ to a rate hike in September”.
“Lockhart also added that his ‘most important message’ was that rate increases will follow a gradual path after liftoff. The Fed official saw Friday’s payrolls report as ‘satisfactory’ although continued to acknowledge that ‘downward pressures on the rate of inflation are not yet behind us’.
“This was a theme consistent with the rhetoric out of the Fed Vice-Chair Fischer yesterday. Giving little away on the whole, Fischer noted that the US economy is nearing full employment but inflation is ‘very low’ as a result of the temporary impact of the recent slump in commodity prices. In perhaps hinting at a slightly more dovish stance than his colleague, Fischer added that ‘the concern about this situation is not to move on before we see inflation, as well as employment, returning to more normal levels’.
Key Quotes
“In light of his comments last week which resulted in material moves across the bond market in particular, much of the focus was on the Atlanta Fed President Lockhart”.
“Yesterday was largely a reaffirmation of his view however, saying that ‘I think the point of liftoff is close’ and telling the audience that he is ‘very disposed’ to a rate hike in September”.
“Lockhart also added that his ‘most important message’ was that rate increases will follow a gradual path after liftoff. The Fed official saw Friday’s payrolls report as ‘satisfactory’ although continued to acknowledge that ‘downward pressures on the rate of inflation are not yet behind us’.
“This was a theme consistent with the rhetoric out of the Fed Vice-Chair Fischer yesterday. Giving little away on the whole, Fischer noted that the US economy is nearing full employment but inflation is ‘very low’ as a result of the temporary impact of the recent slump in commodity prices. In perhaps hinting at a slightly more dovish stance than his colleague, Fischer added that ‘the concern about this situation is not to move on before we see inflation, as well as employment, returning to more normal levels’.