Fed: Dovish plumage - ANZ

On Friday, Bullard and Mester rounded out a week of eight Fed speakers and following a hawkish Dudley on Monday, the tone softened suggesting a dovish angle on further rate hikes prospect, explains the analysis team at ANZ.

Key Quotes

“Bullard remained in the dovish camp, suggesting that there are few reasons to raise rates again. However, he did allude to September as a possible start date for unwinding the balance sheet. Mester said that she still sees a gradual path of rate hikes and that the recent bout of weaker inflation outcomes has not altered her forecasts.”