Feds Waller: Still have a ways to go on rates

Fed's Waller is on the wires saying:

• Recent data have made me more comfortable with ideas of 50 bp hike in Dec. and possibly to smaller corporate increases after that
• Will watch data between now and December before deciding on the next policy step
• We still have a ways to go on rates
• Will need to increase into 2023
• Monetary policy needs to be aggressive to reduce inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term.
• The higher the policy rate , the stronger the case for slowing to 50 bp hikes
• Fed policy is very restrictive territory
• endpoint of Fed tightening the path is highly dependent on inflation data
• Fed will reach terminal rate well before inflation reaches 2%
• labor market may be loosening, inflation pressure may be easing, but not enough to alter view of appropriate monetary policy
• slowing in economic activities is a sign Fed actions to reduce inflation are working
• looking for continued downward pressure core goods prices
• moderation in CPI welcome, but I will not be head faked by 1 reports
• Will watch for moderation in shelter inflation, don't expect it for at least several more months
• I believe we can expect wage growth to slow

US stocks are somewhat steady with the NASDAQ leading the way to the downside.

• The NASDAQ index is currently down -163 points or -144% at 11194.95.
• The Dow industrial average is marginally lower by 11 points -0.03% at 33581.45.
• The S&P index is down 30 points -0.75% at 3961.50.

In the US debt market,

• 2 year yield 4.371%, +1 point basis points
• 10 year yield 3.7028%, -9.6 basis points
• 30 year 3.870%, -11.0 basis points

The US treasury auctioned off $50 billion of 20 year bonds at a high yield of 4.072% the current yield is at 4.080% or, -13 basis points. The kink the yield curve between the 10 and 30 year issue, makes the yield kickup advantageous at times