Q&A from NY speech from FOMC voting member
She adds:
- Should consider altering balance sheet unwind if shock hits
- Seen considerable progress on policy normalization
- MBS and US treasury roll off ought reflect different market traits.
- The Fed's neutral rate is low and the Fed is not that far from neutral.
- Euro area economy has strengthened
- Sees some positive signs Japan
- China's economic challenges remain risk to outlook
The speech and Q&A has had a limited impact on currencies or rates.
- The 2 year is stuck in a less than 2 BP range
- The 10 year range is less than 3 BPs
- The USDJPY is in an 11 pip range over the last 1 1/2 hours.
