Just the ADP report today on the docket, while the Fed's hawks will be on parade once again after being let out last week, with Hoenig, Lacker and Bullard spreading the anti-QE3 gospel. In the meantime a $6.5 billion POMO will close at 11am EST.
8:15: ADP employment report (March): Sizable increase. Over the last six months, growth in the ADP measure of private employment has closely matched growth in the official BLS count (ADP has risen by an average of 148,000 per month, whereas the BLS series has increased by 140,000 per month). Consensus forecasts for a gain of 208,000 in the ADP report this morning therefore look broadly consistent with expectations for Friday’s Employment Report. Note however that while the average growth rate between the two series has been close, the gap can still be quite large in any given month.
Median forecast (of 25): +208k; last +217k.
11:00: POMO Closes, Fed monetizes another $5.5-$7.5 billion of 10/15/2013 – 02/28/2015 bonds, meaning the just issued 912828PZ7 will likely be spat out by the Primary Dealers
13:30: Kansas City Fed President Thomas Hoenig speaks at the London School of Economics. Q&A scheduled. He is not currently a voting member of the FOMC.
14:00: Richmond Fed President Jeffrey Lacker testifies before a House Financial Services subcommittee hearing on the economic impact of regulatory reform. Mr. Lacker is not currently a voting member of the FOMC; his next turn comes in 2012.
16:00: St. Louis Fed President James Bullard speaks on “US Monetary Policy and the Path to Normalization”. Given the topic of the speech, expect Mr. Bullard to reiterate some of his comments on the need to turn policy attention toward tightening. He is not currently a voting member of the FOMC.