BMO's Ian Lyngen adds Fed Chair Yellen on...>

US TSYS: BMO's Ian Lyngen adds Fed Chair Yellen on in her speech on Friday

(1000ET/1500BST) will "need to walk the line of acknowledging that inflation is

an increasing concern for the FOMC, while simultaneously keeping expectations in

place for a balance sheet rolloff announcement in September." 

- He adds "those anticipating that she will completely recast softer core

inflation as something more than transitory will surely be disappointed, but we

do expect the Chair will at least leave the possibility open that the Fed could

pause in December if the inflation data continues to deteriorate. After all, in

separating the tapering announcement from the December rate hike, and making the

latter more data dependent than the former, the Committee has already done so to

a large extent."

- He said ECB's Draghi is the week's "true wildcard", which "has been a

universal theme, and that leaves the emphasis on Mario's comments over Janet's,

although the post-close liquidity conditions on the last Friday in August will

certainly add to the volatility, if we do happen to see hear anything more

concrete about changes to the ECB's bond buying program."