### TWO DISSENTERS NEXT WEEK? Boston Fed Pres...>

FED: ### TWO DISSENTERS NEXT WEEK? Boston Fed Pres Rosengren on Friday (CNBC

interview) systematically picked apart the case for a July rate cut.

- With KC Fed`s George saying similar on Jul 17 (no change in economic outlook

since June FOMC hold), next week's anticipated move could see just 8-2 in favour

of easing 25bps - complicating the communications task for Powell + co.

- Both George + Rosengren cited solid data, and financial stability risks from

cutting. And while both are on the same hymn sheet re: seeing downside risks,

they favour waiting for those risks to actually materialise before acting.

- Non-voters Barkin, Bostic, Mester and Harker may support wait-and-see stance.

- Rosengren on an insurance cut: "It's not costless to take out insurance. You

pay a premium" - cited 9/11, LTCM etc as cases for insurance cuts - not now.

- On data: "economy is quite strong...inflation is going to be very close to

2%...that's an environment where you don't have to take a lot of action."

- Interestingly, Rosengren pointed to curve flattening via lower 10-Yr yld not

as sign Fed should cut, but that additional stimulus is already being delivered:

'that is an easing...financial accommodation' due to global factors.