Federal Reserve Cleveland Fed President Beth Hammack:
There has to be a high bar for Fed to step in to aid marketsMarket should set where term premium standsUncertainty is a big issue in economy, it’s causing businesses to pauseEconomic uncertainty prompting business cautionWe have not seen the need for Fed market intervention‘Incredibly high bar’ exists for Fed to step inRecent market troubles was risk transfer, markets were functioningNatural to see investors shift positions during volatilityFed job is not to tell markets what the right price is
Bolding above is mine, focusing on the real economy for a moment. The haphazard announcement from Trump will weigh on business investment, activity, and employment. The data will increasingly begin to show this from April onwards.
Earlier:
Fed’s Hammack says some volatility in overnight markets is not a bad thing
This article was written by Eamonn Sheridan at www.forexlive.com.