It only takes a few moments to share an article, but the person on the other end who reads it might have his life changed forever.

Thursday, August 25, 2016

Fed's Kaplan: We should be able to hike rates in 'not too distant future'

  • Bond market predominantly driven by global search for yield
  • We are making progress on employment, slow progress on inflation
  • Case for hiking rates 'strengthening'
  • Hesitant to raise Fed's 2% inflation target
  • Debate about Fed monetary policy and targets is 'healthy'
  • Liquidity is fundamental force driving bond market
  • Case for removing accommodation in strengthening
Kaplan has taken the same slightly-hawkish tone before but there's still good news for the US dollar here and it's a sign of what's to come at Jackson Hole.
The question is: How will the market take a similar comment from Yellen? My guess is the dollar bulls will get far more excited and that stocks are vulnerable.

No comments:

Post a Comment