Federal Reserve officials addressed ongoing inflation concerns, energy shocks, and geopolitical risks as the central bank approaches its next policy meeting. Kansas City Fed President Jeffrey Schmid emphasized that inflation remains persistent, with energy price shocks spreading into the broader economy, reaffirming the Fed’s commitment to bringing inflation back to its 2% target, according to FX Street [1].
Chicago Fed President Austan Goolsbee described the US economy as broadly stable but noted that tariffs and war-related price increases add complexity to the inflation outlook, FX Street [2] reported. Meanwhile, currency markets saw the US Dollar regain strength, with the EUR/USD pair holding firm on Thursday following recent pressure, supported by US inflation data, according to FX Street [3].
Brown Brothers Harriman highlighted that the US Dollar Index (DXY) is currently testing resistance at its 200-day moving average, while US PCE Price Index inflation remains above the Fed’s target of 2%, FX Street [4] noted. For Japanese investors, these developments signal potential volatility in FX and equity markets as global monetary policy tightens amid inflationary pressures.