It seems as if chair Powell is already running for the hills in the average inflation targeting relationship. A few months of vastly overshooting actual inflation and Powell and the FOMC aborts the AIT-regime. This was almost faster than even we dared to anticipate, even if we have been clear frontrunners in calling for an early tapering discussion within the Fed due to the spike in inflation that would arrive in Q2. After Powell ran for the hills, yield-curve-steepenistas started running for their lives with 5s30s flattening as if tapering had already been launched. Taper talks ought to be ultra-good news for 2s5s ... (full story)