Fedspeak hasn't broken any new ground on policy
Fedspeak hasn't broken any new ground on policy. SF Fed's Daly (non-voter), more of a dove, said she's remaining "patient" on a possible rate cut this year, in comments following her speech. So far she doesn't see a sustained, deep inversion of the yield curve. She agreed with the FOMC that the economy is in a "really good place." But she did offer that potential tariffs on Mexico raise uncertainty, which in turn hurts GDP growth, but they could put small, upward pressure on inflation. Richmond Fed's Barkin (non-voter) is more of a hawk and said in Q&A that the labor market is running hot, but so far inflation remains tame. He is nervous about the global economy, however, noting the slowing in Europe. And he added tariffs are making consumers a "little discombobulated." Fed VC of Supervision Quarles continued to urge banks to move away from Libor sooner. He doesn't believe transitioning to SOFR will disadvantage banks in the regular stress test trials.