10Y dollar reflation Trump

Can You Hear Me Now?

So one of the things I've been harping on since the release of the Fed Minutes on Wednesday is this palpable, nagging unwillingness for commentators to just come out and admit that they were wrong when they pushed headline after hawkish headline yesterday advertising how the Fed was telegraphing a March hike. Those headlines (which came rapid fire) pretty clearly suggested that their authors were either not watching the market's reaction to the Minutes or if they were, they didn't have a clue what the market was trying to say. I tried to explain things in "No, Those Fed Minutes Were Not Hawkish." Well, "can you hear me now"? Needless to say, Mnuchin didn't do the reflation narrative any favors. Here's Bloomberg explaining today what I tried to explain yesterday, although you'll note the overwhelming tendency to cling to the hawkish narrative despite the market moves: The dollar was down against most of its G-10 peers and near its session low, nursing losses sustained after Treasury Secretary Steven Mnuchin said that fiscal stimulus effects on the economy in 2017 may be limited. The dollar lost out Thursday as traders and investors struggled to balance hawkish Fed rhetoric
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