Mind The Cross-Atlantic “Gaps”: Your Week Ahead Preview

Earlier, we talked a bit about Donald Trump’s waning political capital and the extent to which rising policy uncertainty in the US and declining political risk in Europe may ultimately lead to a narrowing of rate differentials, painting a bearish picture for the dollar. Meanwhile, the yen is likely to remain bid as its fortunes are…

These Are The Fed’s Options To Avoid Another Taper Tantrum

” The 2013 “taper tantrum” also provides a reminder that the impact of balance sheet policy on financial conditions is uncertain and could be larger than our baseline estimate. We doubt the impact would be as large today—in 2013 markets misunderstood tapering as implying earlier rate hikes, whereas today markets would likely view earlier tapering as implying later hikes— but the risk is worth considering”