Sees three hikes in 2017. Not a voting member in 2017.

  • March hike is data dependent
  • 3 hikes a reasonable guess for fed rates in 2017
  • Uncertainty from fiscal policy
  • All meetings are live
  • inflation moving back towards target.
  • Gradual pull back of monetary accommodation
  • Does not want to delay hikes for too long
  • Balance sheet reinvestment will depend on economy
  • Inflation will build up if we push the economy too hard
  • Fiscal policy should focus on long term issues

The USDJPY is moving higher on the headlines. It trades up to 112.94 from 112.60. The 100 hour MA is up ahead at 113.08.

The 10 year yield is up to about 1.5 bp to 2.47%.