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Central bankers say interesting things (really)

| Posted by: Paul Donovan | Tags: Paul Donovan

  • San Francisco Fed President Williams was stressing the importance of looking at data trends and not at single data points – a somewhat futile gesture as we regrettably all live in a world of hashtag economics.
  • While it could be argued that the Fed should raise rates in September, it seems more likely that the FOMC will delay a rate hike until the December meeting. The Yellen US Fed ascribes perhaps undue importance to market pricing (which argues for delay), and political risk is a more legitimate concern.
  • There are a couple of Fed speakers on the agenda today. However, Bank of England Governor Carney is probably the more interesting policy maker to follow, as he testifies to Parliament. Euroskeptics may try and present recent data as a criticism of the Bank's approach to the EU referendum result.
  • German industrial production is due. The data is dated, but may be looked to given some softening of German manufacturing sentiment. Meanwhile Australian GDP accelerated in the second quarter, but this was domestic focused, so there is limited implication for global growth.