Chicago Fed President Charles Evans repeated that he feels a 50 basis points rate cut is needed to lift inflation. According to him, inflation at 2.25% or higher, would be appropriate for this point in the business cycle. He added that after a decade below target, inflation needs to move above 2% if Fed is to credibly say its target is symmetric, as cited by Reuters. Regarding the labor market, he mentioned wage growth might indicated that it is not at the true “scarcity limit.”
The US Dollar held near daily highs following his comments, consolidating important gains. The DXY was up 0.46%, near 97.40, at the highest since Wednesday.