Speaking in NY

  • Uncoordinated policy can shift demand across borders.
  • Policy convergence among big economies may be limited
  • Headwinds may mean fed right path lower-than-expected
  • Stronger dollar seen a significant drag on inflation
  • Weakness abroad, lower neutral rates may slow fed
  • Coordination among central banks can be quite helpful
  • Persistently low PCE inflation means fed must be cautious about relying on historic Phillips curve
  • There is evidence of that labor market slack remains in US

Her comments are a little more dovish it seems - although there is little movement in currencies (if anything, they are 5-8 pips in the favor of the USD dollar.

The Dow has just turned negative for a brief moment. The S&P is up 0.13%. The Nasdaq is up 0.30%.