- No compelling reason to wait until more evidence to decide what to do
- More of a compelling case for bringing rates up then holding for a while
- Debt ceiling deal removes a ‘big piece of uncertainty’
- Decision could still be swayed by NFP and next inflation report
- Full interview (may be gated)
This just helps to rebuff the higher for longer narrative and is certainly going to keep markets on their toes in the weeks ahead. The odds of a 25 bps rate hike stand at 58% today and it’s all about looking to the next big data to either validate or invalidate that sentiment. And it doesn’t come any bigger than Friday’s jobs report for this week.