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Aug 18, 2014
Push-me-pull-you Fed-speak – Rabobank
FXStreet (Guatemala) - Analysts at Rabobank highlighted that Bullard stated that the markets are probably wrong to be discounting slower rate hikes than the Fed is forecasting.
Key Quotes:
“And are “trading too dovishly compared to the committee”; yet Kocherlakota said that the FOMC won’t hit its target of 2% inflation until 2018 due to weakness in the labour market! (and hinted that he looks at the broader measure of unemployment at 12.2% not the official at 6.2%)”.
“In other words, the market saw two starkly varying views – and Treasuries listened to Kocherlakota not Bullard, 10-year yields closing at 2.34%, having tested 2.30% intra-day”.
Key Quotes:
“And are “trading too dovishly compared to the committee”; yet Kocherlakota said that the FOMC won’t hit its target of 2% inflation until 2018 due to weakness in the labour market! (and hinted that he looks at the broader measure of unemployment at 12.2% not the official at 6.2%)”.
“In other words, the market saw two starkly varying views – and Treasuries listened to Kocherlakota not Bullard, 10-year yields closing at 2.34%, having tested 2.30% intra-day”.