Main takeaway from Clarida for markets..........>

FED: Main takeaway from Clarida for markets appears to be him suggesting that he

prefers to look at surveys for pricing of cuts, rather than market pricing

itself (i.e. Market getting ahead of itself??) Basically implied that he doesn't

think most market participants really expect a cut this year. The following

quote from CNBC`s website: "Market pricing for rate cuts is a little tricky,

because there's market expectations for rates, there also can be term and

liquidity premiums... I don't think when you ask folks they're pricing in that

rate cut, even though market pricing might suggest that"

- Q: Re financial conditions as mentioned in FOMC minutes. A: Financial

stability risks to the US are moderate. Could look at various measures of equity

valuations, they are what they are, but also structually low equilibrium

interest rates, which we have to factor in. Will leave it to others to comment

on connection between [balance sheet expansion and equities rising]. But it's

technical.