Hawkish Fedspeak Forces Modest Market Retreat
Traders are staying in their foxholes this morning after a flock of Fed officials delivered a remarkably unified message on rate cuts, warning markets not to expect easing to begin for many months yet. Speaking at the Peterson Institute in Washington yesterday, Governor Waller counselled patience, saying “In the absence of a significant weakening in the labour market, I need to see several more months of good inflation data before I would feel comfortable supporting an easing in the stance of monetary policy”. At a separate event, Cleveland’s Loretta Mester said “I need to see a few more months of...