US Fed's Rosengren speaking to Bloomberg tv 13 Oct
- wages and salaries are going up
- labour market is tight
- low jobless, inflation outlook warrants tightening
- US jobless rate could fall below 4%
- concern that prolonged low rates spurs reach for yield so that's one reason to normalize rates
- expects US GDP growth around 2.5% in H2 2017
- Fed will have to look through hurricane data
- Fed chair must work with rest of FOMC
- not expecting US recession in next year or two
But afterwards ? Seems to me once again the CB hawks just want to hike to create some wiggle room for the troubles ahead.
Meanwhile USDJPY 112.17, EURUSD a tad lower at 1.1822 but GBPUSD back up to 1.3292. I did warn of cable dip demand earlier and not to get too greedy !
