Today's interest rests with Boston Fed President Rosengren who, in the wake of the weak September payrolls report, felt that caution was warranted over the timing of the first hike. Although not a voter this year, he has still expressed the view that a hike in 2015 remains a distinct possibility should economic growth and a further tightening in the labour market warrant such a move, notes Lloyds Bank.
In the wake of the strong October labour market report, his views may provide some proxy representation of the relatively dovish members on the FOMC that are voting this year.
The better performance of the U.S. employment report for October lent support to recent statements by Fed Chair Yellen, Vice-Chair Fischer and New York Fed President Dudley that a rise in the policy rate at the December FOMC meeting remains firmly on the table.
Meanwhile, remarks from Governor Brainard, who had previously argued against an early hike in the absence of clear evidence that inflation was set to return to target, struck a more conciliatory tone. Over the coming week, several other FOMC members will add their voices to the policy debate.
