Speaking from LA

  • Fed dealing with outside sources
  • Economy still needs gentle shove from fed policy
  • US economy. All in all looking pretty good
  • Things are looking good on employment
  • Sees increasing signs wage growth is picking up
  • Forecast 2.25% GDP growth in 2016
  • expects inflation moving to 2% over next 2 years
  • Fed policy data dependent
  • Fed dealing with outside forces
  • Gradual path of rate increases preferred route
  • Downward pressure on inflation from oil dollar should peter out.
  • Fed is closely monitoring potential spillovers from China, Brazil, others
  • no sign market woes have derailed the economy
  • Steep rent rise a reflection of US economic strength

The EURUSD has moved lower along with the USDJPY since the comments. The USDJPY is trading at new session lows (and with that combination the EURJPY is also reaching new lows).