• Quite strongly believe that we have to sustainably get inflation back to 2%
• There is still work to do on that
• We’ve seen some cooling in labour market conditions but it is still generally pretty strong
• On the NFP revision, „it doesn’t change a lot“ to the outlook
• Rates are not overly restrictive
• There is room to consider where we go from here

It’s not exactly the type of softer language that markets would like to be hearing from the Fed. The narrative that traders want right now is that ‚labour market is bad, we want rate cuts now‘. So, this doesn’t quite fit with that. USD/JPY is now up just above 146.00 with 10-year Treasury yields at the highs for the day at 3.835% – up by 6 bps.

This article was written by Justin Low at www.forexlive.com.