Fed's John Williams and Dennis Lockhart speak to Politico
Markets are more pessimistic than he is about June
Wouldn't take June off the table
June could be a meeting where action is taken
Expects Q1 GDP to be revised higher
Both wages and prices are moving towards the Fed's goals
Atlanta Fed's wage tracker has been rising
Still sees some labour market slack
2-3 hikes possible this year
It's desirable that the Fed doesn't surprise markets
Not ruling out a hike before the Brexit
Fed officials will be monitoring market volatility around Brexit vote
If Brexit doesn't look like it will effect the US economy, there's no reason not to discuss a June hike
Williams
June FOMC is live in his view
We are in a position to engage in the discussion of normalising policy
Incoming data is good and reassuring
Even 2% GDP is above trend
Wages are picking up more than suggested by averages
US is at, or very close to, full employment
There's been a broad improvement in a lot of US labour data
Repeats 2-3 rate hikes is possible
Gradual 2-3 hikes this year, 3-4 next year (what planet is he on?)
Brexit could lead to a flight to quality in the short term
All well and good but neither are voters this year. The dollar is hardly sniffing at the headlines but it has improved by a handful of pips.
3-4 hikes? I can't get over that comment.
Can't get over that comment part 2: The first hike was like pulling teeth and now we're going to get another 7 over 18 months?? The only way that's happening will be if oil hits $100+, and even then there's still many other parts that would have to fall into place.
