- Further progress on inflation expected this year but ‘greater confidence’ still needed before moving to cut interest rates
- Housing-related inflation will gradually decline.
- There are still large gaps in the labor market.
- The financial system is sound and resilient.
- Relatively high valuations relative to fundamentals in major asset classes
- Full report
- “Inflation fell markedly last year and has shown modest progress so far this year.”
- “The labor market continued to regain balance during the first half of this year and remained strong.”
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“Real GDP growth is reported to have slowed in the first quarter after rising at a strong pace in the second half of last year.”
- “Measures of longer-term inflation expectations are within the range of values seen in the decade before the pandemic and remain broadly consistent with the FOMC’s longer-run 2% target.”
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“PCE price inflation slowed markedly last year and has shown modest progress this year, remaining above the Federal Open Market Committee’s longer-run objective of 2%.”
The Federal Reserve’s Monetary Policy Report is a semi-annual report to Congress. It provides an overview of the nation’s economic and financial conditions, as well as the Fed’s monetary policy actions and plans, but it is rarely influential in the market.
This article was written by Adam Bouton on www.forexlive.com.