Federal Reserve (Fed) Bank of Minneapolis Chairman Neel Kashkari speaks at a St. Paul Area Chamber event in St. Paul, Minneapolis on Wednesday. He said that the big question is how long the Strait of Hormuz will remain closed and what effect it will have on inflation.
key takeaways:
Inflation is very high.
There is a big question mark over how long the Strait of Hormuz will remain closed, it will have a big impact on inflation.
Inflation needs to be brought back to 2%, the goalposts should not be moved.
Inflation shocks do not let the Fed out of trouble, but they do make the job of controlling inflation challenging.
Before the Iran conflict, few people believed that inflation was coming back down to 2%.
The labor market is moving sideways, ‘lukewarm’.
The inflationary environment has worsened due to Iran’s shock.
The labor market seems to be hanging in there.
“Not sure the Fed’s policy rate decisions will have much impact on mortgage rates.”
US dollar price today
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed today. The US dollar was the strongest against the New Zealand dollar.
| USD | EUR | gbp | JPY | scurvy | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.29% | 0.19% | 0.21% | 0.09% | -0.23% | 0.34% | 0.26% | |
| EUR | -0.29% | -0.10% | -0.11% | -0.23% | -0.53% | 0.04% | -0.06% | |
| gbp | -0.19% | 0.10% | 0.00% | -0.11% | -0.41% | 0.17% | 0.04% | |
| JPY | -0.21% | 0.11% | 0.00% | -0.10% | -0.43% | 0.12% | 0.06% | |
| scurvy | -0.09% | 0.23% | 0.11% | 0.10% | -0.33% | 0.25% | 0.14% | |
| AUD | 0.23% | 0.53% | 0.41% | 0.43% | 0.33% | 0.57% | 0.47% | |
| NZD | -0.34% | -0.04% | -0.17% | -0.12% | -0.25% | -0.57% | -0.11% | |
| CHF | -0.26% | 0.06% | -0.04% | -0.06% | -0.14% | -0.47% | 0.11% |
The heat map shows the percentage change of major currencies against each other. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you select US Dollar from the left column and move to Japanese Yen along the horizontal line, the percentage change displayed in the box will represent USD (base)/JPY (quote).
