- Would be very cautious on early asset sales
- High unemployment, subdued inflation, well anchored inflation expectations reasons to keep highly accomodative policy
Like Dudley and Bernanke yesterday, Tarullo sounds very dovish. Hoenig is all alone in the hawkish camp with a few leaning in his direction, but just a tad. No move from the Fed anytime soon is the bottom line.
EUR/USD has extended its range a few pips to the 1.3353 level as shorts continue to cover. EUR/JPY is getting a nice boost as US asset managers join the buying, pushing that pair into the 93.20s.
