Sage Investment Club

Fed’s George is not a voting member and is set to retire shortly.

Last night NY Fed Pres. Williams said:

  • Inflation is still to high
  • The Fed still has more work to do to bring inflation down to their goal of 2%
  • Job growth remains strong
  • He expects growth to be moderate in 2023
  • He is not changing his view on rate forecast. WIll be based on data

Meanwhile, while the Fed forecasts 5.13% for the terminal rate, the market forecasts the Fed cutting to 4.43% by year end. That is a 71 basis point difference between the Fed target and what the market is currently pricing in.

Later today Fed’s Chris Waller will be speaking at 1 PM. He is probably the last Fed official to speak before the blackout period before the February 1 meeting. Waller is thought to be more of a hawk. Hence his comments will be monitored for a easing of those views.

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