As they seem to have in UK and possibly euro zone.
- Fed must take steps to offset high oil if signs emerge it having permanent impact on US economy
- Investors should start demanding higher rates on US debt if fiscal authorities don’t get their act together
- Must distinguish between Spain and other euro countries like Greece, Portugal
- Believes markets not taking Spanish reform steps sufficiently into consideration
- If Fed accomodation successful, must start considering normalising monetary polcy, though not necessarily tightening
