Speaking in NY

Fed's Rosengren is out with his hawkish comments:

  • May need to hike rates more aggressively. Greater than 3 times per year is possible
  • Expects rate hikes at least as quickly as median Fed forecast
  • Expects more than 2% real GDP growth over the next 2 years
  • Very limited slack in labor market
  • Delaying tightenings risks overshooting employment/inflation goals
  • Signifcant risk including fiscal policy and overseas economies.

Hawkish comments indeed but the Fed president is NOT a voting member in 2017.

The USDJPY has moved a bit higher and recovers to the close from yesterday at 114.25. The 200 bar MA on the 4-hour chart comes in at 114.346. The high just reached 114.315.