Fed's Mester: Yield curve control is a discussion for a future phase
Cleveland Fed President Lorena Mester on Bloomberg TV:
- China trade tension is another source of uncertainty
- No decisions taken on yield-curve control
- Sees policy support via forward guidance and asset buying
- Recovery could be slow, hard to imagine it as V-shaped
- Sees second phase of monetary policy to support recovery
Mester is certainly hinting at more action but a move in June is unlikely. Today is the final day before the blackout period but we will hear from Powell at 11 am ET (1500 GMT).