Fed's Waller is on the wires saying:
- Recent data have made me more comfortable with ideas of 50 bp hike in Dec. and possibly to smaller corporate increases after that
- Will watch data between now and December before deciding on the next policy step
- We still have a ways to go on rates
- Will need to increase into 2023
- Monetary policy needs to be aggressive to reduce inflation .
- The higher the policy rate , the stronger the case for slowing to 50 bp hikes
- Fed policy is very restrictive territory
- endpoint of Fed tightening the path is highly dependent on inflation data
- Fed will reach terminal rate well before inflation reaches 2%
- labor market may be loosening, inflation pressure may be easing, but not enough to alter view of appropriate monetary policy
- slowing in economic activities is a sign Fed actions to reduce inflation are working
- looking for continued downward pressure core goods prices
- moderation in CPI welcome, but I will not be head faked by 1 reports
- Will watch for moderation in shelter inflation, don't expect it for at least several more months
- I believe we can expect wage growth to slow
US stocks are somewhat steady with the NASDAQ leading the way to the downside.
- The NASDAQ index is currently down -163 points or -144% at 11194.95.
- The Dow industrial average is marginally lower by 11 points -0.03% at 33581.45.
- The S&P index is down 30 points -0.75% at 3961.50.
In the US debt market,
- 2 year yield 4.371%, +1 point basis points
- 10 year yield 3.7028%, -9.6 basis points
- 30 year 3.870%, -11.0 basis points
The US treasury auctioned off $50 billion of 20 year bonds at a high yield of 4.072% the current yield is at 4.080% or, -13 basis points. The kink the yield curve between the 10 and 30 year issue, makes the yield kickup advantageous at times