Fed officials in with a fairly hawkish tone - Investec

Research Team at Investec, notes that we heard from a couple of notable Fed speakers in Rosengren and George, both of whom presented a fairly hawkish tone.

Key Quotes

“Rosengren said 'if the incoming economic data continue to be consistent with gradual improvement in labour markets and inflation getting closer to target, the Fed should be ready to normalize interest rates'. He followed this up by also saying that market pricing currently implies a too pessimistic view about the fundamental strength of the US economy.

Fellow Fed official George offered a similar view in saying that rates are 'too low for today's economic conditions'. The probability of a June hike however continues to sit at 4%, according to the yield curve.”