Fed’s Waller is on the wires saying:

  • Recent data has made me more comfortable with ideas of a 50 basis point hike in December and possibly smaller corporate increases thereafter.
  • Will monitor data by December before deciding next policy step
  • We still have a long way to gos
  • Should increase until 2023
  • Monetary policy should be aggressive to reduce inflation .
  • The higher the policy rate, the stronger the case for slowing increases to 50 basis points
  • Fed policy is very restrictive territory
  • the end point of the Fed’s course tightening is highly dependent on inflation data
  • The Fed will hit its terminal rate long before inflation hits 2%
  • the labor market may ease, inflationary pressure may decrease, but not enough to change the view of an appropriate monetary policy
  • the slowdown in economic activity is a sign that the Fed’s actions to reduce inflation are working
  • looking for continued downward pressure on commodity prices
  • moderation in CPI welcome, but I won’t be rigged by 1 reports
  • Will watch shelter inflation moderating, don’t expect it for at least several months
  • I believe we can expect wage growth to slow

US stocks are somewhat flat, with the NASDAQ leading the way lower.

  • The NASDAQ index is currently down -163 points or -144% at 11194.95.
  • The Dow Industrial Average is slightly lower by 11 points -0.03% at 33,581.45.
  • The S&P index is down 30 points -0.75% to 3961.50.

In the US debt market,

  • 2-year yield 4.371%, +1 basis point
  • 10-year yield 3.7028%, -9.6 basis points
  • 30 years 3.870%, -11.0 basis points

The US Treasury auctioned off $50 billion of 20-year bonds at a high yield of 4.072%, the current yield is 4.080% or -13 basis points. The bend in the yield curve between 10- and 30-year issues sometimes makes rising yields advantageous