Noted hawk Dick Fisher of the Dalas Fed says he doesn’t see the Fed tightening any time soon because there is so much slack in the US economy inflation is not a concern. Therefore, he says its not appropriate to be a “screeching hawk” at the moment. The Fed is constantly working on its exit strategy and says he’s not convinced the yield back up in the last month is due to fears of debt monetization. If he made these comments two weeks ago we’d be pushing 1.45, but with the dollar in recovery mode and the reflation trade unwinding, the buck is taking the comments in stride. EUR/USD traded at session lows of 1.3757. UPDATE: Fisher says China relaizes that the success of the dollar and the US economy is in their interest.
Fed’s Fisher: Inflation not an issue, not a “screeching hawk” at moment
Source: www.forexlive.com