Federal Reserve Evans speaking and hawkish

Federal Reserve Evans was speaking to reporters ahead of next week's FOMC meeting and has said, "We're on the cusp of a period of rising interest rates."

Key comments:

  • Fiscal policy under discussion can reinforce expected US growth trajectory
  • Fed to be patient see what fiscal stimulus emerges
  • Jobless rate means less need for fiscal stimulus
  • With unemployment at 4.6% you don't need explicit infrastructure stimulus
  • Fiscal policies can reinforce growth outlook
  • Says demand in US is really quite good
  • He thinks inflation to move toward Feds 2% goal
  • Need to have patience to assess what new administration's policies will be

USD/JPY: headed towards the 115 handle and highest levels since March

Currently, USD/JPY is trading at 114.59, up 0.90% on the day, having posted a daily high at 114.79 and low at 112.88. ISM Non-Manufacturing improves
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