Primary dealer media scan: The Fed will fight inflation and its decisions impact other central banks…

Federal Reserve. inflation. “At some point, as we continue to tighten monetary policy, it will become appropriate to slow the pace of increases while we assess the effects of our cumulative tightening on the economy and inflation. In any case, the path of policy should depend on how quickly we make progress toward our inflation goal. In sum, inflation is too high, it must come down, and we will keep at it until the job is done.” — Lisa Cook.

Federal Reserve. inflation. “I believe we have tools in place to address any financial stability concerns and should not be looking to monetary policy for this purpose. The focus of monetary policy needs to be fighting inflation.” — Christopher J. Waller.

Treasury Department. currency. “For major economies facing high inflation, the immediate task is to return to an environment of stable prices.  Central banks bear the prime responsibility.  But it is important to recognize that macroeconomic tightening in advanced countries can have international spillovers.  Differences in countries’ circumstances and in their respective policies are bound to result in some currency realignments.  The G7 has committed to market-determined exchange rates.  But we are attentive to the potential consequences of exchange rate movements.” — Janet Yellen

Primary dealer. RBC Capital. In regard to cuts in oil production: “The Federal Reserve is the central bank for the U.S., but of course, they have an impact on the rest of the world. Because so many commodities are priced in U.S. dollars, central banks have to take into account the strength of the dollar.” — Elsa Lignos, Managing Director, FX Strategy, RBC Capital.

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