HMMMMM

Loretta Mester is out with an interesting comment:

  • It might be a good time to raise countercyclical capital buffer for banks

Is she more concerned about a downturn in quality of loans?

The XLF ETF (financials) is trading at the lowest level since September 2017. The index is down -12.62% from the September high.

She adds:

  • frequent White House tweets don't affect that policy
  • firms report raising wages because of tight job market
  • we won't overreact to temporary moves in inflation