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.



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