FX Daily: Fed hawks consider ‘pent-up exuberance’
USD: Lockdown FX market volatility remains suppressed, given no sign of major central banks adjusting policy rates anytime soon. Catching our eye yesterday were comments from Atlanta Fed’s Raphael Bostic that the threat of ‘pent-up exuberance’ in the business sector could cause a return of inflation should the Federal Reserve cut too quickly. Bostic reiterated a view of a first cut in the third quarter and then a pause to see how businesses and markets responded. While Bostic is a known hawk, his remarks serve as a reminder that the ...
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