At the top of the hour, the U.S. Treasury will auction off $40 billion of 10 year bonds. Feds Kashkari will also be speaking for the second time this week. Recall on Tuesday he said:
- Not changing my forecast for rates for now
- Still sees rate path moving towards around 5.40%
- Wishes to see more evidence that underlying inflation was trending down more
- Services side of the economy is still very robust
- Hard to imagine strong jobs growth can occur with wage growth moderating
- We haven't done enough to bring the labour market into balance
Kashkari is more hawkish as far as a terminal rate versus most Fed officials who were still in the 5% – 5.25% with an eye on potentially going higher. Kashkari is firm at 5.4% or about 25 basis points higher than the consensus
