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More from Musalem: Data since prior meeting suggests economy may be materially stronger

More hawkish comments from the St Louis Fed President

  • Inflation data is also stronger but has not yet changed view that policy is on a path to neutral
  • There is likely space for a gradual easing of policy towards neutral rate
  • Stronger data likely pushing Treasury yields higher
  • Too soon to understand new administration
  • Rising bond yields also offer a sense of higher inflation risk and some sense the Fed may not cut as much

This article was written by Adam Button at www.forexlive.com.

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