The events of the past week will continue to reverberate in the capital markets in the week ahead. The key development was the market’s ultra-dovish read of the Federal Reserve. Although the dollar recouped the lion’s share of the knee-jerk losses, the debt markets have not returned to status quo ante. Many, if not most market participants fail to appreciate our heuristic insight into the Federal Reserve: Policy emanates from the leadership of the Federal Reserve: Yellen, Fischer, and Dudley. We argue that the key organ of the leadership is the FOMC statement. Other communication tools including the dot-plots and the ... (full story)