Fed officials express more dovish policy stance☕
This has become the norm in the post-QE era. In the evolving geopolitical conflicts, the market has more reason to focus on the possibility of the Federal Reserve cutting interest rates, rather than the negative impact and casualties caused by large-scale conflicts; since the conflicts occurred over the weekend, we has seen a series of clearly dovish Fed statements:
1. Vice Chairman Jeff Jefferson mentioned “awareness of tightening financial conditions”
2. Dallas Fed Logan said, “A rise in the term premium can help [the Federal Reserve] cool the economy.”
3. Atlanta Fed Bostic says interest rates are "sufficiently restrictive" and high enough to "achieve [the Fed's] 2% inflation target."
4. SF Fed Daly said that “5% will not become the new neutral interest rate” and that rising bond yields may replace interest rate hikes
Finally, the Wall Street Journal’s Timiraos (Fed’s mouthpiece) published an article overnight titled “Rising bond yields may extend the Fed’s pause in interest rate hikes,” completing the Fed’s dovish tone that began on Monday. .
