BOE’s Mann: Global inflation today is different from 1970s

The US Federal Reserve (Fed) remains well placed to respond to evolving price pressures, as global inflation today is different from that seen in the 1970s, Catherine Mann, the newly-appointed Bank of England (BOE) policymaker said in an Australian National University conference Monday by video.

Key quotes

“History is an important guide,” responding to a question on the similarities between the 1970s and today and whether the Fed should respond to the latest 5.4% surge in inflation.  

“We should always pay attention to historical data. But I think we ought to pay attention to some historical institutional differences as well.”

“So, I would say the Fed is not behind the curve, and they have the tools in order to address the inflation concerns as they develop.”

Market reaction

GBP/USD is off the lows but remains below 1.3850 on the above comments. The spot is down 0.14% on the day.

• GBP/USD Price Analysis: Attempts a bounce from the 50-HMA support