McElligott Spots ‘Ultra-Rare’ ‘Bad News Is Bad News’ Regime

Sometimes, bad macro news is just bad news. Common sense interpretations of incoming data went out of style in the post-Lehman era, when evidence of economic vibrancy was generally greeted with skepticism by stimulus-addicted markets. Subdued growth and below-target inflation in developed economies gave central banks the plausible deniability they needed to persist in emergency policy settings despite the conspicuous absence of any emergency. Those policy settings were generally credited with