The Fed appears to be splitting into two camps; one to pause and the other not to pause. St. Louis Fed President James Bullard is backing two more interest rate hikes in 2023. His Minneapolis colleague Neel Kashkari says next month is a
Equites were again mixed as all were parsing comments about the prospects of a debt deal and latest Fed speak.
The headlines about the market’s reaction to the debt ceiling debate are conflicting. RBC writes “markets are betting on a rocky end to the debt ceiling debate roiling Washington, but if they are
Equity markets are sanguine about a potential default, believing an eleventh-hour compromise will be made after both sides of the political aisle have attempted to appease their
Yesterday several Fed officials spoke about the economy and the direction of monetary policy. In some regards the comments differed considerably.
What will happen this week? At the end of last week, equities slipped while bond yields climbed after a reading of long-term inflation expectations rose unexpectedly and a
As argument can be made that monetary policy is now neutral. The inflation rate as measured by the CPI is 5% and the overnight rate is 5.0%. It is largely expected the Fed will not increase rates at
Three-month Treasury yields are at the highest level in more than two decades amid heightened risk of a default if Congress fails to lift the debt ceiling on
The unexpected pickups in hiring and wages last month increase chances the Federal Reserve will hold interest rates high for longer and potentially keep the door open to
Debt cap fears are beginning to be manifested in short term Treasuries. Yesterday the government sold one-month bills at the highest level in many years underscoring just how quickly the debt ceiling landscape has shifted in the wake of
