"Fed mouthpiece": Markets over-interpret Hammack's June rate cut comments

Odaily News Nick Timiraos, the "Fed mouthpiece", said that Fed Chairman Hammack's remarks on Thursday attracted widespread attention because some market participants over-interpreted them as a signal that the Fed might be ready to cut interest rates in June. Hammack didn't really say that a June rate cut was coming. When Hammack talked about the June rate cut, he mentioned the qualifier "if" twice: "If we get clear and convincing data before June, if we know which action is right to take at that point in time, then I think the committee will take action." The danger of over-reliance on these overly broad "if" assumptions is that they don't provide particularly clear answers. (Jin Shi)