SF Fed Pres. Mary Daly (voting member) is speaking and says:
- The last 3-months has left considerable uncertainty about the next few months of inflation.
- There is a range of scenarios the Fed is facing right now.
- Getting different signals from firms who say consumers seem to be getting juicy but input prices are not yet declining.
- Balance sheet offers no signal about monetary policy.
- Officials don’t know how the economy will evolve, only how they would react under different circumstances.
- Right now no evidence that the labor market is approaching a worrisome position
- Still see a really healthy labor market and inflation that is too high
US stocks are hanging onto gains:
- S&P index of 0.33%
- NASDAQ index of 0.20%
US yields are now negative help by a decent 30 year auction:
- two year yield 4.813%, -3.0 basis points
- 5-year yield 4.470%, -3.0 basis points
- 10 year yield 4.461% -2.2 basis points
- 30-year yield 4.619%, -1.2 basis points
This article was written by Greg Michalowski at www.forexlive.com.
