Fed may need to raise rates above neutral | 20 April 2022

20 April 2022, USD/JPY

Fed may need to raise rates above neutral

USDJPY trading plan:

Chicago Federal Reserve Bank President Charles Evans said, that he's "comfortable" with a round of rate hikes this year that includes two 50 basis-point increases and reaches a neutral setting by year end. "We should be looking for clear progress of easing inflationary pressures or else we would need to be much more concerned about how much we will have to do," Evans told reporters after an event at the Economic Club of New York, adding that if core inflation is stuck at 3.5% the Fed may need to raise rates above neutral. "I'm just not going to be able to make a judgment about that until the end of this year and probably into next year." This is a positive signal for the dollar.

Investment idea: buy 128.40 and take profit 128.90.

David Johnson
Analyst of «FreshForex» company
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