Feds Daly :Last 3 mos. has left appreciable uncertainty about subsequent few mos. of inflation

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