Comments from Esther George in Santa Barbara, California on the balance of economic risks
- Watching auto sales closely, may be spending signal
- International backdrop poses less downside risks today
- Sees risks from delaying gradual hikes
- Repeats that balance sheet should be trimmed this year
- No Q&A expected
The Fed used to be 'data dependent' but now it's data-that-fits-my-preconceived-view dependent. Slower Q1 growth is definitely a reason to be more cautious and the bond market reflects that.
That said, she did give a nod to weak auto sales and that means it's something the market will be watching more closely when the next batch of numbers are out in early June.
Generally, George is a major hawk. She forecasts 4 hikes this year.
