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Fed Dilema Resolved; Treasury's Just Beginning

May 26, 2006
Prior the US April jobs data, the Fed funds futures had been straddling the fence, with a roughly 50/50 chance of a hike/pause. The weaker than expected job growth resolves the dilemma and shifts the odds convincingly toward a pause. The Federal Reserve will signal to the market next week that it is prepared to pause, barring significant surprises…
Fed Dilema Resolved; Treasury's Just Beginning Fed Dilema Resolved; Treasury's Just Beginning Reviewed by magonomics on May 26, 2006 Rating: 5
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Inflation Pause at the Fed's Pause

May 19, 2006
Over the past six months, we have warned that the market has consistently under-estimated the magnitude and duration of the Federal Reserve’s monetary tightening cycle. Unwaveringly we forecast Fed funds to be at least at 5.5% by the end of this year and we recognized upside risks to our scenario. We had thought that the Fed would pause in June an…
Inflation Pause at the Fed's Pause Inflation Pause at the Fed's Pause Reviewed by magonomics on May 19, 2006 Rating: 5
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