San Francisco Fed President:

One of the 'unexpected consequences' of negative rates is that they hurt bank profits. Funny though, the Fed didn't seem to mind that QE was the greatest gift to bank profitability in history.

More comments:

  • Fed on path to raising rates
  • Would rather use forward guidance than negative rates
  • Doesn't expect inverted yield curve
  • We don't want to run a hot economy for too long

A hot economy is the least of the Fed's problems.