No Doves Allowed
Weary investors can look forward to a short break from escalatory Fed rhetoric. Officials are in the media blackout ahead of the May policy meeting, at which the Committee is virtually guaranteed to deliver a 50bps rate hike.
The perception of policy panic prompted a flurry of bearish trades across the US rates complex last week, when the combination of Jim Bullard's 75bps trial balloon, Jerome Powell's endorsement of front-loaded hikes and remarks from Mary Daly (among others) played absolute
It is a frog in slowly heating water. The Fed and market won’t stop until something breaks. It almost always does. There are so many candidates out there.