Posted To: MBS Commentary
Will the Fed raise rates? Is economic data sliding? Are stocks and bonds more interested in trading the rate hike or the data? All of these were fair questions yesterday and all could be argued either way. There is a camp that firmly believes the Fed is dead set on hiking rates in 2015, no matter what. They believe that even though the Fed says they’re taking a data-dependent approach, that the committee is somehow ideologically pre-committed to hiking this year. I’ve been to this camp. It’s not a bad camp, and not necessarily wrong. The other camp thinks there’s no way the Fed can hike with inflation persistently failing to launch, with GDP leading off the year potentially close to 0.0 , and with a strengthening dollar meeting head-on with a plummeting Euro and ECB Quantitative…(read more)
Via:: MBS Day Ahead: Cause for Concern, but Nowhere Near Abandoning Hope
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