· Powell Says No Rate Hikes Until Max Employment and 2% Inflation
· Euro ECB President Lagarde Says Inflation Not Meeting Goal
· Intraday Volatility in Stocks Leads to Weakness in NZD and AUD
· 8-Day Oil Rally Loses Momentum
However, Powell casted doubt on this scenario by saying that the Fed will not tighten policy in response to strong labor data because a strong labor market is still very far away. In fact, he calls for rates to remain at the current near-zero level until the economy reaches maximum employment and inflation hits 2%. The economy dropped to a very low base during the pandemic, millions of Americans are unemployed and Powell wants to ensure a durable recovery.
Looking ahead, the Chinese Lunar New Year should reduce participation in the market. The economic calendar is light with only U.S. jobless claims and Australian consumer inflation expectations scheduled for release.
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