One Bank Asks: “Where Have All The Doves Gone”?
One of the things you might have noticed is that the Fed is looking at a veritable Goldilocks environment when it comes to squeezing in another rate hike.
Stocks are up, the dollar is well behaved (you'll recall that the post-Trump-speech USD rally faded a bit on Wednesday afternoon), and the fact that 10Y yields touched a YTD low last Friday gave the FOMC a bit more breathing room between where we are today and that dreaded 3% threshold beyond which the stock/bond return correlation suddenly
If Yellen and co. raise and I’m not sure they will, as one event in Europe could throw this whole plan down the toilet. Just a thought….