Many market observers seem to be exaggerating the role of some Federal Reserve officials. Bullard, who has mentioned exiting from QE2 before completing the $600 bln of purchases. Plosser, a voting member has also sounded a bit hawkish, though not as much as Bullard. However, while these views have been highlighted, the comments by Evans, a voting member, and Rosengren, a non-voted have been played down, though they seem to reflect the general majority at the Fed.
The hawks will dominate tomorrow as well. Hoenig, who retires in October, Lacker and Bullard all will speak. It is not until Thurs that the centrists are heard in the form of Gov Tarullo and non-voting Pianalto. Lacker also speaks on Thurs. Friday, in addition to the jobs report, hawks Plosser and Fisher, the most likely dissenters at upcoming FOMC meetings speak, but this may be offset or blunted by NY Fed's Dudley. While attentive to the divergence of opinion among the Fed, we suspect that QEII will continue unabated and that monthly reviews are part of the process.