Richmond Fed Pres. parking is speaking and says:
Fed is in position to respond appropriately regardless of how economy involves.US economy looks pretty goodLabor market is resilient.From here, labor market mighty be fine or may continue to weaken.Inflation might be coming under control or might risk getting stuck above Fed 2% target.Feds focus may turn to upside inflation risks or to downside employment risks, depending on how economy develops.
The market is pricing a 65% chance of a 25 basis point cut in December. That is down over the last week or so (it was in the high 70%s last week).
US yields are higher but off their highest levels:
2-year 4.314%, +6.1 basis points5-year 4.269%, +7.6 basis points10-year 4.370%, +6.3 basis points30 year 4.516%, +3.7 basis points
This article was written by Greg Michalowski at www.forexlive.com.
