Fed says tightening policy still hurting economy

In the Asian session on Monday (May 29), the U.S. dollar index rose, with the latest price of the U.S. dollar at 104.28, an increase of 0.07%. Fed‘s Mester said the data confirmed that inflation remains too high. Tight monetary policy is still affecting the economy.

The PCE data highlighted the slow pace of inflation decline; the Fed’s slow progress in reducing inflation is “concerning”. The Fed’s inflation forecast may need to be revised upwards. The Fed still needs to see more data ahead of its June Fed meeting. Still supports the federal funds rate to maintain the level above 5%.