END OF DAY REPORT APRIL 18th
Goldman Sachs raises its ECB terminal rate to 3.75% from 3.5% (which has previously been lowered to 3.5% from 3.75%)
Fed's Bostic (non-voter) reiterates that he expects one more rate hike; economy still has lots of momentum and inflation is too high - CNBC interview Still more work to be done on policy. Baseline is to hold on rates after the next time and hold for "quite a while". Will take a while for inflation to move back to target. Doesn't have a recession as his baseline forecast. Wants an orderly return to balance in the economy; need a slowdown to help cool inflation. Acute tensions in the banking system are going down; system seems to be stable and navigating trouble. More caution in bank lending will allow the Fed to hike rates less.
Fed's Bullard (non-voter, hawk) says US recession predictions ignore the strength of the labour market and pandemic savings still to be used; not much clear progress on inflation means rates need to continue to rise - Reuters interview
Fed's Bowman (voter) says we are watching very closely for potential signs of more bank stress
S&P finishing around unchanged in a quiet but choppy trade with hawkish Fed speak and mixed housing data, while on the macro front, there is Philly Fed (Apr), Flash PMIs, and a slew of large-cap earnings to look forward to.