The Fed's Chair Harker Hawkish Again: Monetary Policy Still Needs to Remain Tight to Curb Inflation
BlockBeats News, November 14th, the Federal Reserve's Harker stated that although the U.S. dollar is not a core topic of central bank discussions, this year's weakness in the dollar does not seem to be a cause for concern. Harker said: "I think there has been a lot of discussion this year about the U.S. dollar and its weakness. But it is important to remember that we started from a state of the dollar being extremely strong, so this year's weakness is largely just bringing the dollar closer to its theoretically fair value, making it more reasonable compared to other currencies."
Harker also stated that the interest rate policy should remain restrictive in order to exert downward pressure on the still concerning level of inflation. "Given the Federal Reserve's dual mandate of inflation and employment facing challenges, this is a difficult period for monetary policy. But overall, I think we need to maintain a certain degree of tightening to continue to exert pressure on inflation and bring it back down to our target level." (FXStreet)
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