Comments from Rosengren
- Most of the news we've had is quite good
- Act aggressively if you're clearly going into a downturn but I'm not convinced that's seen
- Trading partner weakness pushing 10-year yield lower
- Economy has definitely stabilized since last year but it's still strong
- I don't want to ease if economy doing perfectly well
There's no doubt that he won't be supporting a 50 bps cut. I think we can put that entire notion to bed.
I think Powell deserves a lot of blame for that talk. The market was showing a good chance of 50 bps and he kept sending out dovish messages. The market is still showing an 18% chance of 50bps.
