Fed's Waller is speaking but did not make any comments on monetary policy or the economy as he speaks on financial innovation.
His comments:
- We should encourage innovation for financial services
- Should be critical of claims by innovators, but also challenge the doubters
- Smart contracts have risks, also considerable promise
- Fed has regular discussions with banks on understanding, managing risk of artificial intelligence
- Curious to see how banks make further use of AI and want to make sure they do so responsibly
When Waller spoke last Friday he surprised market by saying that inflation was not under control and implied more than one more Fed hike. That sent yields higher and the dollar higher.
Fed's Mester will speak at 12:20 PM ET, and is speaking on the economy and policy outlook. Mester has not spoken in a few weeks. At the time she said:
- Fed will need to raise rates above 5% and keep them there for a while
- Tightening monetary policy needed to cool too hot inflation
- How much more the Fed hikes depends on economy and how it reacts
- Tighter financial conditions should create restraint on economy
- Banking sector resilient, stresses appear to have eased since last month
- Fed balance sheet cuts aiding rate-hike cycle
- Fed closely watching banking system for signs of stress
- Expects inflation to ease to 3.75% by end of year, 2% by 2025
- Expects growth to moderate this year
- Expects jobless rate to rise to between 4.5% and 4.75% this year