An interview with Collins is out in the FT.
I take her comments to signal that the Fed would be there if things got disorderly (as always) but some in the market are taking it as a stronger signal that the Fed is standing by.
I think a different report released at about the same time is the driver of the bounce in risk assets at the moment.
Update: Now she is out with an interview in the WSJ as well.
- It’s appropriate for us to have a pretty high bar to be pre-emptive” on rate cuts
- USD weakness could reflect expectations of slower economic grow
- Too soon to say whether broader efforts by the Trump administration to order the global trading system might also upend traditional capital-flow dynamics
This article was written by Adam Button at www.forexlive.com.