Following comments by Fed Reserve chairman Jerome Powell that the new inflation target is “moderately above 2%” – a more dovish stance – the dollar rose slightly against the euro.
The Fed said that the US economy had risen faster than expected and so was updating their projected overall decline in the economy from 6.5% to 3.7%. However, they warned that the recovery could slow and further support could be forthcoming.
Retail sales for August were a disappointment, rising 0.6%, when the consensus forecast was 1.2%. The disappointment was even bigger for ‘core retail sales’, which excludes luxury items.
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