Consumer confidence is at an 8 year high? That’s nice.
Inflation expectations unexpectedly high? Great.
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The Fed decision is next Wednesday and it’s not as straightforward as some analysts are making it out to be. Plenty of people think it will be a straight-forward removal of ‘considerable time’ and replaced with ‘patience’ but inflation is throwing a wrench into the entire discussion.
Every dollar oil falls is another headache for the hawks.
That’s what’s happening in the market today as the US dollar and Treasury yields fall. The S&P 500 is worried about the other side, that the Fed will hike when it shouldn’t.
For more, read about What’s priced in for the Fed’s ‘considerable time’ commitment?
The market is kicking and screaming like it wants Bullard to step in and promise to be dovish.
