Comments from the Dallas Fed President:
- Was quite challenging to do most recent round of Fed forecasts
- Swift war resolution may mean economic impact might be pretty moderate
- Policy is positioned to respond to data, Fed prepared to make adjustments as needed
- US has some buffers to impacts from the war
- Key question is if war disruptions induce investment in US energy production
- Energy producers appear to need extend higher prices to boost production
I am not hearing we will see ‘dramatic’ US energy production increase so far
There has been a big turnaround in markets as there is some sense of a TACO coming. I flagged the bond market seeing this first and now it’s spreading. There is a sense that someone out there is trading on insider war information.
In real news, IRNA reports that Iran has drafted a protocol with Oman for traffic in the Strait of Hormuz and that could be helping as well.
This article was written by Adam Button at investinglive.com.
