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Waller Supports 25bp Hike In Feb

FED
  • Gov. Waller, one of the most hawkish voters on the FOMC committee, supports a 25bp hike at the next meeting.
  • He expects to support continued tightening of monetary policy with a still “considerable way to go toward out 2% inflation goal” but some other headlines offer a relatively dovish take:
  • “Ample evidence that this [dampening demand and economic activity to support further reductions in inflation] is exactly what is going on in the business sector.”
  • “Broader inflationary pressure across the economy is easing.”
  • He does however offer a more hawkish take on the decline in temporary-help employment that Brainard noted yesterday, as it “may be due at least in part to employers opting to hire full-time workers in place of temps to help keep jobs filled.”
  • FOMC-dated OIS dips 0.5bp to 26bp priced for the Feb 1 decision but limited impact further out, also down ~0.5bp to 4.895% for the June meeting.

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