Free Trial

Williams Toes The Line

FED
  • NY Fed’s Williams keeps to comments that appear broad FOMC consensus at this stage, with 50bp hikes making sense at upcoming meetings as expeditiously hiking to more normal levels and MBS sales an option in the future.
  • *WILLIAMS: NEED TO GET REAL RATES BACK TO ZERO NEXT YEAR OR SO - bbg
  • *Williams: Fed Will Need to React to Changing Economic Conditions –WSJ

Specifically on housing:

  • *WILLIAMS: HOUSING DEMAND FUNDAMENTALLY IS VERY STRONG – bbg
  • *WILLIAMS: WE CAN'T HAVE THIS EXCESSIVE DEMAND GO ON TOO LONG – bbg
  • Market reaction: the miss in Empire State manufacturing survey continues to set the tone. FOMC-dated Fed Funds implied hikes still well within today’s and Friday’s ranges though, with 54bps for June and a cumulative 101bp for July meetings (earlier 103bp). BBDXY down almost -0.1% since Empire and has largely moved sideways throhugh Williams.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.