Yesterday, the San Francisco Fed President Daly mentioned two paths for Fed policy. When she talked about a negative labor shock, the stock rally picked up speed.

I’m convinced this is where the Powell Fed sees the chance (or excuse) to begin cutting. But the notion of cutting is getting a hit today.

Today, two Fed officials threw cold water on rate cuts.

-          Bowman says cuts are not “warranted.”

-          Logan says the policy might not be tight enough.

Inflation Expectations saw a big increase that moved consumer sentiment to 67.4, well below the consensus of 76.2.

Growth sectors are mixed this afternoon while Financials lead.

Have a great weekend.