He is known as a hawk

Fed's Quarles speaking at an insurance conference in NY, veered from the expected script and gives more than expected views on the economy:

  • data on real economy is very strong
  • December job creation number was very vague
  • Inflation remains very well contained, especially with oil prices falling
  • financial markets recently reacted to doubt about strength of global growth including China, Europe
  • low-inflation, strong jobs is a very good environment
  • some China, Europe data signals little less growth
  • some global weakness may be transitory
  • markets are attuned to downside economic risks
  • core base case remains very strong
  • we see some stretched valuations in equities, commercial real estatem, but overall risk to US financial stability remains moderate

Well, he is more chatty than I thought he would be given the conference and topic.

US stocks that moved to the up side after earlier declines have been erased:

  • S&P indexes up 1.23 points at 2617.35
  • NASDAQ index up 5.88 points at 7040
  • Dow industrial average is still down by 38 points at 24170 but well off the low levels