Fed Powell: Makes sense to moderate pace of interest rate hikes

• makes sense to moderate pace of interest rate hikes
• time to moderate pace of rate hikes may come as soon as December
• have made substantial progress toward sufficiently restrictive policy, have more ground to cover
• it seems to me likely rates must ultimately go somewhat higher than policymakers thought in September
• likely to need to hold policy at restrictive level for some time
• history portions strongly against prematurely loosening policy
• we have a long way to go on restoring price stability
• we will stay the course until the job is done
• October inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term data was welcome a surprise; will take substantially more evidence to give comfort inflation is actually declining
• we estimate PC price index rose 6% in 12 months through October
• the path ahead for inflation remains highly uncertain
• moderation in labor demand growth will be required to restore labor market balance
• so far seen only tentative signs of moderation in labor demand, wage growth

The initial reaction is a decline in the US dollar.

• The EURUSD moved back up to test its 200 hour moving average of 1.03475. That is where trades right now.
• The GBPUSD is also moved up to retest its 200 hour moving average at 1.19754.

In the US stock market,:

• Dow industrial average moved from -158 points to -9.58 points currently
• S&P index moved from -10.32 points to +13.12 points currently
• NASDAQ index moved from +14.75 points to +94.17 points

For the full text of the Fed Chair speech CLICK HERE.