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::
- Fed's Williams: It is better to take a preventative approach than to wait for disaster
- US dollar weakens after dovish Williams comments
- Fed funds futures now pricing in at 59% chance for 50 bps cut in July
A little later the New York Fed said, "No, it was all just academic theorising!"
- New York Fed says Williams' speech was not about potential policy actions at the July
- US dollar gaining points on New York Fed disavowing Williams
- The New York Fed wound back Williams comments at the most damaging time of the day - here's why
A poor performance from the NY fed indeed, sent the USD gyrating all over the shop … this posted a little earlier:
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.