Fed speakers stuck to gradual tightening message - ANZ

Fed speakers overnight stuck to the gradual tightening message and in addition the hangover of stimulatory monetary policy on asset valuations was also in focus.

Key quotes

“Stanley Fischer said financial vulnerabilities are “moderate” but there has been “a notable uptick in risk appetites”. John Williams said "there seems to be a priced-to-perfection attitude out there” and that the stock market rally “still seems to be running very much on fumes.” Janet Yellen also noted “asset valuations are somewhat rich if you use some traditional metrics like price earnings ratios”. Finally, Patrick Harker said he still backs another rate hike this year.”