Gov Jefferson Offers A More Balanced Take To Logan

• Following headlines from the seemingly early release of ’23 voter Logan's prepared remarks (*FED'S LOGAN SAYS CURRENT DATA DOESN’T JUSTIFY PAUSE: CNBC, via BBG), Gov Jefferson, a voter and nominated for the Vice Chair role, offers a more balanced take.
• "On the one hand, inflation is too high, and we have not yet made sufficient progress on reducing it. On the other hand, GDP has slowed considerably this year, and even though the effect has been muted in the labor market so far, demand clearly has begun to feel the effects of interest rates”.
• The earlier Logan remarks and stronger than expected US data still win out with FOMC-dated OIS pricing a 8bp increase for the June decision (+2.5bp since the data).

Bloomberg headlines.

• DEMAND HAS CLEARLY BEGUN TO FEEL EFFECT OF HIKES - bbg
• 1 YR ISN'T LONG ENOUGH TO FEEL POLICY EFFECTS - bbg
• MONETARY POLICY SHOULD BE FORWARD-LOOKING - bbg
• HARD TO SAY HOW MUCH BANK STRESS WILL CURB CREDIT - bbg

More hawkish

• CORE SERVICES EX-HOUSING INFLATION 'STUBBORNLY HIGH' - bbg
• INFLATION TOO HIGH, PROGRESS HAS BEEN SLOWING - bbg