Fed’s Jefferson is now speaking and says:
- inflation is too high and by some measures progress is slowing, but a year is not long enough to feel the full effect of interest rate hikes so far
- Outlook is not for recession, but growth has slowed considerably
- Expect job growth to also decline and unemployment rate may rise
- Evidence so far points to only a modest incremental tightening of credit conditions to recent bank stress
- Remains uncertain how tighter credit will influence household and business spending
- Inflation in nonhousing services has shown no signs of a significant decline
- Will consider all these factors in deciding the appropriate stance on monetary policy
Sounds like he wants to be on hold. Logan is a new governor on the FOMC board and as such, has a permanent vote at meetings.
A snapshot of the futures ahead of the US stock open shows the Dow industrial average -113 points. The NASDAQ index is up around 5.2 points. The S&P index is down -7.5 basis points.
The 2 year yield is up 6.8 basis points of 4.224%. The 10 year yield is up 3.8 basis points to 3.619%.