Sentiment Improves as Fed Rhetoric Remains Balanced
The dollar is softer and Treasury yields are subsiding after the chair of the Federal Reserve avoided walking back last week’s observation that signs of “disinflation” were beginning to appear – something that many saw as a communications error at the time. Jerome Powell essentially repeated last week’s message in a question and answer session at the Economic Club in Washington yesterday. Speaking with David Rubenstein, Powell noted that Friday’s jobs data was “certainly strong – stronger than anyone I know expected,” warning that the process involved in getting inflation down to target would be “bumpy”. “The reality is we’re...