Nick Timiraos is out with a new article in the Wall Street Journal and he cites an interview with the Fed’s Collins from Monday and her saying:
“My read of the data that we have so far is that we are near or perhaps at a sufficiently restrictive level of monetary policy to hold for some time.”
I think this was an unpublished interview with the Wall Street Journal because I didn’t see those comments Monday and can’t find a record of them. They echo what Harker said on Tuesday.
This looks like a concerted push from the doves but she wasn’t joined by Daly today, who is usually a dove so I don’t know if any of this is a preview of what’s coming from Powell. Or maybe the ‘near’ part of the comment is important as it implies perhaps one more hike, likely in November.
Timiraos also quotes former Fed governor Laurence Meyer, who offers some effusive praise of the latest data:
“My God, that’s incredible… there’s absolutely no question that core inflation has turned the corner faster” than the Fed anticipated.
In any case, the bond market isn’t cheering today as yields move up 5-6 bps following a weak 30-year bond sale.
This article was written by Adam Button at www.forexlive.com. Source