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Data is More Decisive Than Central Bankers
It seems that data is more decisive than central banks. A broad suite of strong readings on the US economy is driving higher short-term Treasury yields. This contrasts to the mealy-mouthed could, might, maybe, should we, maybe not brand of guidance from Fed Chair Powell yesterday and ECB President Lagarde today. In my opinion, central bank communications are displaying little to no market savviness with respect to the need to sound forceful in such fashion as to avoid feeding the equity beast. It doesn’t need to be fed and yet an easing of financial conditions could inflame future challenges to monetary policy. In ... (full story)