Fed´s Collins: More banking sector stress could affect policy outlook
Federal Reserve Bank of Boston leader Susan Collins has crossed the wires saying that the risks to the outlook have increased with the banking stress and said her economic views are close to the Federal Open Market Committee´s forecasts.
Key comments
Economic views close to FOMC forecasts.
Risks to outlook have increased with banking stress.
Inflation expectations data show confidence fed will control inflation.
Still seeing labor market strength, wage pressures key for inflation.
Job market data may be lagging indicator right now.
Paying greater attention to banking sector issues.
Banking stress will make some firms more conservative in activities.
Before banking stress, had expected Fed to raise rates more than prior projection.
More banking sector stress could affect policy outlook.
US Dollar update
The US Dollar declined on Thursday on easing fears about banking sector troubles, encouraging economic signs from the chip industry and rising oil prices. On the weekly DXY chart, the US Dollar is closing in on support and the M-formation, a reversion pattern, could hold up the price from moving much lower at this juncture.