Evans (FOMC)

  • not in rush to increase interest rates
  • extra cautious approach warranted when raising rates
  • no problem with a moderate overshooting of a 2% inflation target
  • would rather err on a late rate increase
  • substantial costs to premature lift-off
  • inflation headwinds not easing until mid-16

An ultra dovish speech but then again we all know Evans is a dove so... not much of a market reaction. EUR/USD is up Monday evening mostly on the back of equities plunging with S&P500 futs. down below 1900 and reaching our recommendation target.