Speaking in London

  • US not moving away from 2% growth
  • FOMC has been largely correct that the inflation was returning toward target over recent years
  • Disconcerting that inflation gone away from 2% target
  • The Fed has been raising rates against the backdrop of relatively weak growth, downside inflation surprises
  • financial market reaction to March tightening has not been good, would have expected yields to rise with policy rate
  • US is trying to go it alone among global central banks,, which you can do but need strong data behind you
  • Need to question how far can push yield curves given the global environment
  • Inflation breakeven is suggesting Fed is being too hawkish
  • We are way down in distribution of unemployment rate in US