If you're Yellen.... from San Francisco

Be sure to wear a flower in your hair...

Nothin'? Tough crowd.

Anyway, Janet Yellen of the San Francisco Fed spoke on her economic outlook yesterday. Hence the bad joke. Although not as hawkish as Plosser or Kohn from last week, but she doesn’t sound to keen on a rate cut in the near future.

"Why does a pause make sense to me now, while at the same time I say I'm worried that inflation is too high? My answer is that I do want to see inflation move down, but I believe policy may now be well-positioned to foster exactly such an outcome while also giving due consideration to the risks to economic activity. "

It seems as though the market is coming around to my view that while the next move by the Fed may be a cut, it may not be for some time, and may only be 1-2 cuts in total.