Fed needs to achieve 2% target to ensure its credibility

Federal Reserve Bank of Richmond President Thomas Barkin said on Tuesday that the Fed needs to achieve the 2% inflation target to ensure its credibilitiy, per Reuters.

Commenting on the economic outlook, Barkin noted that if the US were to have a recession, it would likely be a “less-severe” one. He further added that they try not to focus too much on short-term market moves.

Market reaction

These comments don’t seem to be having a noticeable impact on the US Dollar’s performance against its major rivals. As of writing, the US Dollar Index was virtually unchanged on the day at 103.30.