Boston Fed President Collins: Some additional policy tightening will be needed

• Increased uncertainty about monetary policy
• Fed will have to raise rates again to help lower to high inflation
• Fed forecast of one additional hike in 2023 looks reasonable
• After hiking again Fed will likely hold steady for remainder of the year
• Financial sector stress has taken some pressure off Fed to hike rates
• Banking sector are strong, resilient but likely to pull back on lending
• Likely lending cutbacks will restrain economy
• Supported Fed's most recent 25 basis point Basis point A basis point is a unit of measurement used to express the change in value of a financial instrument, such as a bond or a loan. One basis point is equal to 0.01%, or one one-hundredth of a percentage point. For example, if the interest rate on a bond increases from 5% to 5.25%, that is an increase of 25 basis points. It is often used in the context of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ' A basis point is a unit of measurement used to express the change in value of a financial instrument, such as a bond or a loan. One basis point is equal to 0.01%, or one one-hundredth of a percentage point. For example, if the interest rate on a bond increases from 5% to 5.25%, that is an increase of 25 basis points. It is often used in the context of interest rates, yield, and credit spreads. The short-hand for a basis point is bps and on a trading floor you will hear them referred to as ' Read this Term hike
• Will use all necessary tools to counter financial market stress
• The economy is a stronger-than-expected
• Economy likely still feeling shift in Fed policy to more restrictive stance
• Job market strength is likely to moderate

Tomorrow the core PCE data will be released at 8:30 AM with the expectations of a rise of 0.4% for the month of February. That is still too high given the Fed's target of 2.0%. However with bank credit tightening, that will have an additional effect on the economy and potentially inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term.

US stocks have come off a bit and trading near lows for the day.

• Dow industrial average is down 24 points are -0.07% at 32693
• S&P is up 8.72 points or 0.21% at 4036
• NASDAQ index is up 54 points or 0.46% at 11980

In the US debt market, the yields are off their highs but still relatively low:

• 2 year yield 4.107%, +2.7 basis points
• 5 year yield 3.675%, unchanged
• 10 year yield 3.556% -1.0 basis points
• 30 year yield 3.756% -2.1 basis points