NY Fed governor

  • Labor market may have more slack, inflation under 2%
  • Says he does not support raising Feds inflation target
  • Case for retaining current floor system is compelling
  • Fed should return to neutral to ensure price stability
  • Trade, fiscal policies have raised longer-term risks
  • Case for more aggressive tightening not compelling
  • Expects slow inflation rise toward target; sees year-over-year gains in April numbers
  • Supports only gradual rate hikes given inflation remains below target
  • Expects US monetary policy to be, slightly restricted in years ahead
  • Suggests inflation range from 1.5% to 2.5%

The USDJPY is back above the 100 hour MA at 107.245.

The GBPUSD remains below its 200 hour MA at 1.42126.

The NY session low for the EURUSD is at 1.2370. The price is just above that at 1.2374. PS. the EURUSD closed at 1.2367.