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What to Watch: Fed Speak and Debt Ceiling Chatter

US TSYS
Markets attentive to expanded Fed speaker docket this morning, Atlanta Fed President Bostic (non-voter) kicked off several appearances today with CNBC interview a few minutes ago.
  • Treasury futures extending lows after Bostic comments on sticky inflation not coming down fast enough, potential for recession (though not base case), does not expect to see rate cut until "well into 2024".
  • Additional Fed speakers include Chicago Fed's Goolsbee (0830ET), MN Fed Kashkari (0915ET), Fed Gov Cook later this evening (commencement address Berkley).
  • Debt ceiling: President Biden expected to meet with Congressional leaders to discuss on Tuesday after negotiators hashed out changes over the weekend.
  • Punchbowl reports: "The president is scheduled to leave Wednesday for the G7 meeting in Japan. Biden will want to see significant progress in the talks before his departure in order to insulate himself from any criticism over flying to Asia with a debt-limit breach looming."
  • Economic data limited to Empire Manufacturing at 0830ET (-4.0 est vs. 10.8 prior) and TIC Flows after the close.

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