Federal Reserve
- Fed says it's attentive to risks on both sides of the mandate, a change from previous text that said it was highly attentive to inflation risks
- In recent moths there has been 'some' further progress to 2% inflation goal vs 'modest' further progress previously
- Says inflation remains 'somewhat elevated'
- Economy continues to expand at 'solid' pace, job gains have moderated, employment rate has moved up but remains low
- Repeats that it does not expect to cut until it has gained greater confidence that inflation is moving closer to 2%
- Full text
Treasury yields rose a couple basis points across the curve on the release and USD/JPY ticked higher as well. The market was likely looking for something a bit more explicit on cutting in September but I think that was a pipe dream. That said, Powell may give the market what it wants at 2:30 pm in the press conference.
