US Fed's Kashkari out with scheduled speech 21 Feb
- can not base policy on market blips
- not seeing signs of imminent crisis
Best look a bit harder then.
- Wall St over reacts to everything
- not seeing massive leverage build up under assets
- Fed should allow to markets to move up and down
- we debate each word in FOMC statement
- further signalled we continuing on the same path
- higher market rates show optimism
Optimism from who exactly ?
- there is still some slack left in US labour market
- tax cuts could help Fed achieve 2% inflation target.
USD losing a bit of sheen again with GBP the market fave for the moment as Carney & Co say little of note.
GBPUSD 1.3987 with EURGBP down to 0.8818 and GBPJPY up to 150.42
EURUSD 1.2332 USDCHF 0.9366 and USDJPY 107.54 with AUDUSD lower at 0.7840 but support/demand around 0.7830 still holding.
