Markets rebound on dovish Fedspeak
Risk appetite is improving after a flock of Federal Reserve officials executed what looked a lot like a communications pivot yesterday, shifting away from the higher-for-longer message that dominated rhetoric for months. Speaking at an economics conference, the Dallas Fed’s Lorie Logan suggested that a rise in the bond term premium – the yield difference demanded by investors for taking long-term risk – “could do some of the work of cooling the economy for us, leaving less need for additional monetary tightening”, and her colleague Vice Chair Jefferson said “We are in a sensitive period of risk management, where we...