HALISTER1: Rosengren, Dovish Before, Gives ‘Significant’ Remarks: Jefferies

Rosengren, Dovish Before, Gives ‘Significant’ Remarks: Jefferies

(Bloomberg) -- Boston Fed Pres. Eric Rosengren “is one of the most dovish members of the FOMC” so for him to say that mkt is too pessimistic about rate hikes is “significant,” Jefferies economist Thomas Simons writes in e-mail.
  • Fed’s reserve bank presidents “have had a nearly unified opinion in their recent public speeches that the current pricing is too low”
    • 1 reason often cited for why Fed can’t hike in June is because mkt isn’t prepared, fed funds futures are pricing near-zero chance for certain mtgs
  • “We probably need to see similar commentary from Yellen/Fischer/Dudley in order for the market to truly embrace the idea that a June hike is possible”
    • Even so, “the other guys are trying their best”
  • NOTE: Earlier, Rosengren: Likelihood of 2nd Fed Hike Is Higher Than Mkts Think
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Eric Rosengren (Federal Reserve Bank of Boston)
Thomas Simons (Jefferies LLC)

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