The much awaited FOMC meeting last night had something for everyone. Depending on whom you ask, it “sounded very dovish,” or it was “was moderately hawkish.” What Mr Greenspan used to achieve with obfuscation “if you think you understood what I’ve said, I probably wasn’t clear enough,” Chair Yellen’s committee achieves through flip-flopping and qualifying qualifiers.
The text of the FOMC statement is Continue reading
The market has started predicting a text change for the next Fed meeting. After poor jobs data last week, it is unlikely to happen. But the FOMC may still change the rates paradigm.
The market was asking if the Fed might be ready to remove the phrase “considerable time” which is used to show that there will be a sizable lag between the end of QE and the next rate hike. Over the last week, the US10yr yield has moved up accordingly. But not enough – such a change in tone would shock the market, Continue reading