Rosengren not itching to hike rates
- Unlikely US will overheat this year
- Restaurants and tourists are having a hard time finding workers
- Many employers have had to raise wages, even for relatively low wage jobs
- It's going to be a tight labor market after two years
- Rosengren's earlier comments
This is the big debate for 2021. Will the Fed blink and start taper and signaling rate hikes or is the market wrong?
No one knows but the Fed has been sending a confident message. You also have to imagine what the lay of the land looks like if the Fed doesn't hike for another two years and unemployment is at 3% or lower. I sure wouldn't want to be holding bonds.
