Select Language

Fed's Bowman: Inflation progress slows and possibly halts

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. Fed's Bowman: Inflation progress slows and possibly halts

World FX news

search
Breaking news

Fed's Bowman: Inflation progress slows and possibly halts

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2024.04.18 08:42
Fed's Bowman: Inflation progress slows and possibly halts

update 2024.04.18 08:42

Federal Reserve (Fed) Governor Michelle Bowman said Wednesday that inflation progress slows and possibly halts. Bowman further stated that monetary policy is currently restrictive and time will tell if it is "sufficiently" restrictive.

Key quotes

"Inflation progress slows and possibly halts."

"Strength of consumer spending tied to ongoing job growth."

"Monetary policy currently restrictive; time will tell if it is "sufficiently" restrictive."

"Consumers are turning to cheaper goods, but still spending heavily on travel for eclipse viewing."

Market reaction

The US Dollar Index (DXY) is trading 0.01% higher on the day at 105.95, as of writing.

Fed FAQs

Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.

The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials - the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.

In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed's weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.

Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.

 

Date

Created

 : 2024.04.18

Update

Last updated

 : 2024.04.18

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?
No loading Yes loading

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Previous article

prev

EUR/USD holds above 1.0650 amid renewed selling pressure in US Dollar

Next article

GBP/USD remains capped below 1.2470, eyes on US data

prev

Most viewed

EUR/USD finds support near 1.0650, downside remains favored ahead of Fed policy

The EUR/USD pair finds a provisional support near 1.0650 in Wednesday's European session.
New
update2024.05.01 20:01

NZD/USD Price Analysis: Trades near nine-day low around 0.5900 ahead of Fed's policy

The NZD/USD pair trades close to a nine-day low slightly below the round-level resistance of 0.5900 in Wednesday's European session.
New
update2024.05.01 19:19

US Federal Reserve Decision Preview: Markets look for clues about interest rate cut timing

The US Federal Reserve (Fed) will announce monetary policy decisions following the April 30 - May 1 policy meeting on Wednesday.
New
update2024.05.01 19:00

Gold price remains on tenterhooks with eyes on Fed policy decision

Gold price (XAU/USD) trades close to a more than three-week low around $2,285 in Wednesday's European session.
New
update2024.05.01 18:43

Silver price today: Silver rises, according to FXStreet data

Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data.
New
update2024.05.01 17:47

Forex Today: US Dollar pushes higher ahead of key US data, Fed policy decisions

Here is what you need to know on Wednesday, May 1: The US Dollar (USD) preserves its strength on the first trading day of May as investors gear up for key data releases and the Federal Reserve's monetary policy decisions.
New
update2024.05.01 16:57

USD/CAD Price Analysis: Holds position above 1.3750 amid resurging bullish sentiment

USD/CAD trades around 1.3780 during the early European hours on Wednesday, hovering within an ascending channel on the daily chart.
New
update2024.05.01 16:55

Pound Sterling comes under pressure amid caution ahead of Fed policy decision

The Pound Sterling (GBP) extends its downside below the psychological support of 1.2500 against the US Dollar (USD) during Wednesday's London session.
New
update2024.05.01 16:45

ADP Employment Change Preview: US private sector expected to add 179K new jobs in April

On Wednesday, the United States (US) Automatic Data Processing (ADP) Research Institute is set to unveil private employment data for April.
New
update2024.05.01 16:30

EUR/JPY holds positive ground above 168.00, Eurozone recession ends

The EUR/JPY cross trades in positive territory for the second consecutive day around 168.25 during the early European trading hours on Wednesday.
New
update2024.05.01 15:53

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

arw
  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel