Fed's Collins' Comments:
- Long-term yields have decreased since the last Fed meeting.
- Positive signs are emerging in the labor market's movement towards balance.
- Evidence suggests that financial conditions continue to support the Fed's efforts.
- Close monitoring of rent inflation is necessary.
- Patience is crucial; too early to declare victory over inflation.
- Encouraging developments in shelter inflation have been observed.
- Declaring victory over high inflation is still premature.
- Latest CPI data is promising, indicating economic rebalancing.
- The Fed is positioned to exercise patience, but additional firming measures are not off the table.
- Current economic data is characterized by considerable noise.
Fed's Goolsbee's Comments:
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- Emphasis on the importance of focusing on housing inflation.
- Achieving expected targets could lead to a 2% inflation rate.
- Current focus for the Fed should be on prices, not jobs and growth rates.
- Inflation is showing improvement but remains excessively high.
- Notable gap between economic data and public perception among consumers and businesses.
- A strong rebound in labor supply has been noted.
US Treasury bond yields have been losing ground since the end of October as a result of rising bond prices. Investors are beginning to price in the lack of further interest rate hikes by the Fed. On the TNOTE chart, we can see that the price of the index is rebounding after setting a local low 3 weeks ago. An inverted shoulder-head-and-shoulders formation can be seen on the chart, which would indicate a continuation of the upward movement, potentially above the 110 levels.
Source: xStation 5
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