The New York Fed 'clarified' Williams' comments - but will anyone clarify Clarida's?
New York Federal Reserve branch head John Williams spoke on Thursday, and many in the market thought he was signalling a 50bp rate cut from the FOMC in July.
Greg was all over developments::
- Fed's Williams: It is better to take a preventative approach than to wait for disaster
- US dollar weakens after dovish Williams comments
- Fed funds futures now pricing in at 59% chance for 50 bps cut in July
Sumitomo Mitsui Bank remind us that Clarida was also dovish, but so far no modification of his comments:
- Williams' comments were surprisingly dovish.
- The NY Fed went all the way to try to modify the message
- but no one seems to have done so for Clarida, who also said a very similar thing"
I am still a 'no way' on a 50bp rate cut from the Fed on July 31.