Fed's Miran: The change in border policy is disinflationary

💡 DMK Insight

Miran’s comments on wage moderation could signal a shift in Fed policy, and here’s why that matters: If wage growth is indeed slowing, it might ease inflationary pressures, potentially leading the Fed to adopt a more dovish stance in upcoming meetings. Traders should keep an eye on the next FOMC meeting for any hints of rate adjustments. This could impact not just equities but also the forex market, particularly USD pairs, as a softer dollar often follows dovish signals. Look for key support levels in major currency pairs like EUR/USD and GBP/USD, which could react sharply if the Fed pivots. But here’s the flip side: if wage gains are moderating but still above the Fed’s target, they might maintain a hawkish tone, keeping rates higher for longer. This could lead to increased volatility in both crypto and forex markets as traders reassess their positions. Watch for any economic data releases in the coming weeks that could provide further clarity on wage trends and inflation expectations.