The strong rally in US stocks seen yesterday appears to lack follow-through momentum, with futures indicating a flat open today. The benchmark 10-year yield is fluctuating within a tight range, and Dollar is broadly recovering as selling momentum wanes. The strong increase in import prices serves as a reminder that, although disinflation in the US is making progress again, the journey will be "bumpy", as many Fed officials have emphasized.
In a Reuters interview, New York Fed President John Williams expressed confidence in the current state of monetary policy, stating that it is "in a good place." He highlighted the positive mix of economic data, noting strong consumer spending, business investment, and GDP growth. He emphasized that the economy is "not really at a near-term risk" and remains robust, supported by a strong labor market.
Data this week offered
the U.S. Federal Reserve good news on two fronts but
policymakers haven t openly shifted views yet about the timing
of rate cuts investors are convinced will start this year. . -May 16, 2024 at 01:01 pm EDT
- MarketScreener
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