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Latest CPI Didn't Lower Collins' Est Of Sufficiently Restrictive Rates

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The relevant paragraph from Boston Fed Pres Collins' speech today is below - reinforcing recent commentary across the FOMC spectrum that the October CPI reading didn't hugely change the tightening outlook beyond December:
  • "By raising rates, we are aiming to slow the economy and bring labor demand into better balance with supply. The intent is not a significant downturn. But restoring price stability remains the current imperative and it is clear that there is more work to do. I expect this will require additional increases in the federal funds rate, followed by a period of holding rates at a sufficiently restrictive level for some time. The latest data have not reduced my sense of what sufficiently restrictive may mean, nor my resolve."
  • Collins is considered to be on the more dovish end though it's early days in her tenure at the Boston Fed. Her initial comments on Nov 11 after the October CPI release noted risks of overtightening having risen. However she said then that she saw a higher peak vs her September Dot Plot submission, but that it wasn't "helpful to give a specific number".
  • With little in the way of specifics here, there was minimal move in Fed pricing.
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The relevant paragraph from Boston Fed Pres Collins' speech today is below - reinforcing recent commentary across the FOMC spectrum that the October CPI reading didn't hugely change the tightening outlook beyond December:
  • "By raising rates, we are aiming to slow the economy and bring labor demand into better balance with supply. The intent is not a significant downturn. But restoring price stability remains the current imperative and it is clear that there is more work to do. I expect this will require additional increases in the federal funds rate, followed by a period of holding rates at a sufficiently restrictive level for some time. The latest data have not reduced my sense of what sufficiently restrictive may mean, nor my resolve."
  • Collins is considered to be on the more dovish end though it's early days in her tenure at the Boston Fed. Her initial comments on Nov 11 after the October CPI release noted risks of overtightening having risen. However she said then that she saw a higher peak vs her September Dot Plot submission, but that it wasn't "helpful to give a specific number".
  • With little in the way of specifics here, there was minimal move in Fed pricing.