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::

A little later the New York Fed said, "No, it was all just academic theorising!"

A poor performance from the NY fed indeed, sent the USD gyrating all over the shop … this posted a little earlier:

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.

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"

Huh.

I am still a 'no way' on a 50bp rate cut from the Fed on July 31.

25, yes.

50, no.