Dovish Daly Comments Send Stocks Back Near Session High
Just one trading day after some of the biggest Fed hawks sparked a contained selloff across risk assets, moments ago one of the Fed’s increasingly vocal doves, Mary Daly, took the mic at the Orange Country Business Council where she is speaking live now (Youtube link) and helped push stocks to session highs after she said that the market is (erroneously) pricing in much tighter financial conditions (she said that markets are priced like Fed funds is at 6% not 4.0% where it is currently), and again warned that the Fed must be mindful of risk of tightening policy too mich.
DALY: REAL-WORLD IMPACT OF FED RATE HIKES LIKELY HIGHER THAN WHAT CURRENT RATE TARGET IMPLIES
DALY: FINANCIAL MARKETS PRICED LIKE FED FUNDS RATE AT 6%, NOT 3.75%-4.00%
DALY: FED MUST BE MINDFUL OF RISK OF TIGHTENING POLICY TOO MUCH
DALY: FED HAS MORE WORK TO DO WHEN IT COMES TO RATE HIKES
DALY: FED POLICY IS IN MODESTLY RESTRICTIVE TERRITORY
DALY: LATEST INFLATION DATA MOVING IN RIGHT DIRECTION
DALY: FED MUST GET THE JOB DONE ON RATE HIKES BUT NOT OVERDO IT
Her comments were enough to end the bleeding in stocks and help push them back near session highs.
Follow her comments here:
Mon, 11/21/2022 – 13:35