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