Trial now
SEK

SEK was sold pre European Govies open

BUNDS

Spread dominates the overnight session

GOLD TECHS

Approaching The Base Of The Bull Channel

WTI TECHS

(F2) Bounces Off Yesterday’s Low

MARKET INSIGHT

What to watch

FED
FED: Q&A continues:
Q: Would you characterise current monpol as accommodative, or is it just that
neutral is lower than we thought it was a year ago? Re fiscal policy, is it fair
to say that tax cuts worked the way they were supposed to?
- A: If you look at Fed funds, real rate modestly below 0%, that's somewhat
accommodative policy. But there is a range of plausible estimates of neutral,
and many have moved their estimates down. But this is very likely to be
accommodative and appropriate.
Q: MNI's Jean Yung: Are you concerned about financial stability risks?
- A: We monitor those risks all the time. Currently we don't see large
imbalances. We have a four-part framework: leverage in non-financial sector is
the fourth. With households we see them in very good shape in the aggregate;
that leaves businesses. Leverage in corporations is historically high, we have
been monitoring and taking appropriate steps. Corporate debt one part of a
larger part of our framework, something we're paying quite a bit of attention
to, and taking appropriate action.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com