
What Will Fed’s Reaction Be to Sharp Inflation Fall?
No additional rate hikes, one more, two more? Strategists ponder what comes next after the CPI news.
No additional rate hikes, one more, two more? Strategists ponder what comes next after the CPI news.
Some strategists say pandemic spending and other factors have severed the historic sequence.
Ongoing worries, such as the debt-limit clash, could bring it roaring back, warns Bank of America.
Inflation, Fed rate hikes and an inverted yield curve are all undermining what seems like a new bull market, says Comerica’s Lynch.
It’s a classic recession portent. But inversion’s predictive record is spotty.
The Fed has distorted the Treasury landscape, says a Bernstein savant. Without its bond buying, the 10-year would be yielding 3.7%.
A so-so economy, low earnings growth, an un-inverted yield curve, and a stand-pat Fed are part of the mix for a ho-hum year.
The last time that happened was during the financial crisis, Bespoke says.
Shiller, Yardeni, Yellen, and El-Erian trash this feared recession signal as off-base nowadays.
Allianz economist notes decline of yields and worries they might crop up in America.
Then, the 3-month Treasury could dip below the 10-year, and dispel this dreaded recession portent.
The spread between BBB corporates and 10-year Treasuries is shrinking.