Comments from the Dallas Fed President on Fox Business

  • Says he is watching credit spreads and liquidity amid downturn
  • When global growth is slower it will spill over to some extent to US
  • Does not want to see negative rates in the US
  • Have seen decline in demand in isolated industries such as travel and energy

Him saying that 'it's too soon' is a change in stance from the Fed. Previously, the refrain was that they were comfortable on the sidelines.

As Justin reported earlier, a Fed cut on March 18 is now fully priced in with a 7% chance of a 50 bps cut.