Feds Waller: Does not expect change in policy in the near term

More Waller: Hawkish comments from the Fed Governor

Fed's Hammack: I see a lot of uncertainty in economic outlook

The desk interprets Cleveland Fed President Beth Hammack's recent remarks as reinforcing a cautious yet hawkish stance on monetary policy amid significant economic uncertainty. Per the full note [source], Hammack emphasized the need for the Fed to maintain a neutral policy stance, citing persistent inflation pressures and the impact of geopolitical tensions, particularly the Iran conflict, on the economic outlook. This aligns with the broader narrative of a 'higher-for-longer' interest rate environment, as Hammack indicated that rates could remain unchanged for an extended period. The consensus among market participants appears to reflect a similar sentiment, with expectations for stable rates in the near term.

Fed's Williams: Trims his GDP forecast and boosts inflation view

The desk interprets New York Fed President John Williams' recent comments as a signal of increased caution regarding U.S. economic growth and inflation dynamics. Per the full note [source], Williams has trimmed his GDP forecast while raising his inflation outlook, reflecting heightened uncertainty in the economic landscape. This nuanced shift suggests a more dovish stance on growth while acknowledging inflationary pressures, particularly from supply chain disruptions and energy costs. As such, traders should remain vigilant about potential market volatility stemming from these evolving economic indicators.

New Fed chair Warsh faces hawkish FOMC as rate cut hopes fade on Iran war