SPIP - Updated Outlook And Some Interesting Charts
- By promising to remain super-accommodative for at least a year or so, the Fed runs the real risk of allowing inflation and inflation expectations to run wild.
- Back in February of last year, a casual observer would have remarked that Treasury yields were exceptionally - and historically - very low. Yes, the outlook has brightened, but it still remains unusually dark.
- The bond market is so dominated by risk aversion that short-term Treasury yields are still extremely low, and risk-free real yields are frankly negative. Bond investors are willing to pay exorbitant prices for anything resembling security.
- But the good news for now is that the risks out there are not going unnoticed, and that's a healthy sign.
- Will Congress really end up passing economy-crippling legislation?
For further details see:
Updated Outlook And Some Interesting Charts