Fed members comment on US economy and monetary policy 💵USDIDX slightly loses

U.S. Dollar Index (USDIDX) futures are down around 0.25%. Meanwhile, several Federal Reserve officials have commented on the state of the U.S. economy and monetary policy. Below are key remarks from their recent statements.

Remarks by Mary Daly Kugler (Fed)

• In the near term, there could be an economic slowdown.

• It remains unclear how trade policy will ultimately unfold.

• The healthy state of the economy gives us time to make progress on inflation.

• So far, the economy has shown resilience in the face of disruptions.

• I see inflationary risks arising from tariffs.

• It's important to maintain stable long-term inflation expectations.

• Macroeconomic scenarios are essential amid high levels of uncertainty.

• Q1 GDP data showed that the real economy remains resilient.

• The labor market is stable and continues to demonstrate strength.

• Current monetary policy is moderately restrictive.

• The U.S. labor market remains stable and close to full employment.

Remarks by Michael Barr (Fed)

• Q1 GDP data included some anomalies.

• So far, data points to a strong economy and low unemployment.

• Economic growth has been strong over the past year and remains so.

• Tariff-related uncertainty increases the risk of higher inflation and slower growth.

• Artificial intelligence may require policymakers to reassess the natural rate of unemployment.

• The Fed could face a difficult position if both inflation and unemployment rise simultaneously.

• Monetary policy is currently well-positioned to adjust as conditions evolve.

Remarks by Thomas Barkin (Fed)

• Tariffs will lead to higher inflation in the U.S. and lower economic growth both domestically and abroad, starting later this year.

• The economic outlook is clouded by trade policies that have increased uncertainty, harmed consumers, and weakened business sentiment.

• I’m concerned that tariffs will lead to rising unemployment.