STEVE ENGLANDER, HEAD OF GLOBAL FX RESEARCH AND MACRO STRATEGY STANDARD CHARTERED BANK, NEW YORK

“I think the markets’ reaction, which has been the dollar a bit weaker, bond yields a bit lower, is about right. It’s not like he said ‘Yeah, were going to do three 50s to begin the easing cycle.'”

“What he did was very much focus on the fact that the inflation target is in sight, that they are worried about the labor market, saying that the labor market doesn’t have to weaken any further. So, implicitly, it opens the door to 50s at some point without giving a timetable for it. We still don’t think 50 is going to be the first move, but it could come quickly if the labor market continues to weaken.”