24.06.202111:20 Forex Analysis & Reviews: US stocks move sideways amid Fed comments on financial stimulus

Dallas Fed President Robert Kaplan said the economy is likely to hit the Fed's threshold for cutting bond purchases sooner than people think, which Atlanta Fed President Rafael Bostic supported, affirming that the central bank might make a decision on slowing down purchases in the next few months.

Even so, the members assured that for now, monetary policy will remain soft in order to support recovery. They stressed that any decision will depend on data on inflation and employment, more specifically on whether target levels are finally achieved.

Nancy Davis, founder and CIO of Quadratic Capital said the recent comments are not surprising because for so long, markets were already expecting growth by 2022.

Other interesting data that was released on Wednesday was the report on manufacturing activity, which posted another increase in June. This growth was the fastest record since 2007.

Also, Treasury Secretary Janet Yellen warned that emergency measures may be exhausted by August, unless the US Congress takes action to avert a potential default that would be "catastrophic."

Other key events for this week are:

- policy meeting of the Bank of England (Thursday);

- results of stress tests of largest US banks (Thursday);

- data on US wholesale inventories and jobless claims (Thursday);

- data on US income and expenses (Friday).