US politics and Fed speak recapped; supportive of the dollar? - UOB
Analysts at UOB group noted that the US Senate reached a 2-year bipartisan budget deal which now needs to be passed by the House in order to avert a second government shutdown this year and also recapped on the latest Fed speak as follows.
Key Quotes:
San Francisco Fed President Williams reiterates his view of gradual Fed rate increases going forward as “consumer spending, manufacturing activity and construction are all showing strong numbers”.
Chicago Fed President Evans said he prefers to keep interest rates on hold until at least mid-year. By then if inflation is moving higher, he would then support rate increases. Under an alternate scenario where inflation picked up more assuredly, he would support 3 or even 4 rate hikes in 2018.
Dallas Fed President Kaplan said market valuations are high relative to history. He argued that the recent selloff is “basically a market event and these things can be healthy”