USD/JPY, EUR/USD flows: Bessent FOMC Changes

No real reaction in FX or U.S. Treasuries to U.S. Treasury secretary reported suggestions (here) that the Fed should move to target an inflation range (e.g. 1-3% around 2%) rather than a pin point 2%.  Such a change would give the Fed more flexibility on the margin, but not significant.  Bessant also suggested that the dot plot should be scrapped, which likely reflects Trump frustration at district Fed presidents.  This could make communications less clear, but would not change voting.  With all the district Fed presidents having been reappointed earlier this month, it is now difficult for Trump’s new Fed chair to change voting substantively.