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The Fed completely moved and adopted the slower rate rise view that bond markets had taken on timing of rate hikes. The forex market had to backtrack as they had pretty much been ignoring bond markets and going with the fed outlook instead. As is nearly always the case, the wall street bond guys are smarter and more accurate while Fed are academic economists (clowns).
6 comments:
Fed rate hike already priced in.
The Fed completely moved and adopted the slower rate rise view that bond markets had taken on timing of rate hikes. The forex market had to backtrack as they had pretty much been ignoring bond markets and going with the fed outlook instead. As is nearly always the case, the wall street bond guys are smarter and more accurate while Fed are academic economists (clowns).
Even so, there remains a large divergence in interest rates between the US and Europe and Japan where mountains of debt are being issued in the lower rate regimes while US credit markets have been pretty flat, as Mosler points out weekly. European credit still predicts years of low growth, negative rates or low inflation.
There isn't going to be a Fed rate hike. They'll never kill the golden goose. The Fed is trapped. Watch.
Mal you may be right but I can't explain why... rsp
Looks like I was premature on my dollar top call. Trends revert back to dollar strength overnight.
Yep. No follow through. Guess Yellen can't have it both ways. Shit or get off the pot, gal.
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