Fed speakers offered up a fairly hawkish tone – Deutsche Bank

Research Team at Deutsche Bank, notes that at the Fed we heard from a couple of notable speakers in Rosengren and George, both of whom offered up a fairly hawkish tone.

Key Quotes

“The former opined that ‘if the incoming economic data continue to be consistent with gradual improvement in labour markets and inflation getting closer to target, the Fed should be ready to normalize interest rates’. He followed this up by also saying that market pricing currently implies a too pessimistic view about the fundamental strength of the US economy.

Fellow Fed official George offered a similar view in saying that rates are ‘too low for today’s economic conditions’. The probability of a rate hike next June continues to sit at a lowly 4%.”