- Fed has flexibility in current monetary policy
- More accommodation may be advisable if economy slows more than expected
- Accommodation can only be removed once clear that Fed’s dual mandate has been achieved
- Recent progress in unemployment surprising but still painfully slow
- Concerned by weak spending, housing, oil budget deficits fragile financial infrastructure
Rosengren is a dove’s dove. Despite the very dovish comments, EUR/USD is unable to surmount the 1.3350 area. Central banks were spotted selling there earlier in the day before EUR/USD managed its short-lived pop to the 1.3380s.
