Fed sees significant upside risks to inflation | 17 8月 2023

17 8月 2023, EUR/USD

Fed sees significant upside risks to inflation

EURUSD trading plan:

Federal Reserve officials were divided over the need for more interest rate hikes at the U.S. central bank's July 25-26 meeting, with "some participants" citing the risks to the economy of pushing rates too far even as "most" policymakers continued to prioritize the battle against inflation, according to minutes of the last session. Yet cautionary voices about the effects of continued monetary tightening appeared to play a more prominent role in the debate at last month's policy meeting, an indication that the spread of opinion at the Fed has widened as policymakers weigh evidence that inflation is falling and judge the potential damage to jobs and economic growth if rates are raised higher than necessary. The group also "discussed several risk-management considerations that could bear on future policy decisions," the minutes said. Though a majority kept inflation as the paramount risk, "some participants commented that even though economic activity had been resilient and the labor market had remained strong, there continued to be downside risks to economic activity and upside risks to the unemployment rate."

Investment idea: sell 1.0900 and take profit 1.0840.

David Johnson
Analyst of «FreshForex» company
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