Perfect soft landing. In November stocks and bonds have rallied and the US dollar has weakened. This is happening as investors have gone all in on the idea, that the US economy is moving into an environment of solid economic growth and lower inflation, which will prompt the Federal Reserve (Fed) to cut its interest rate. The problem is that if economic growth remains solid at the current policy interest rate, then almost by definition monetary policy is not restricting the economy, which means the Fed has little reason to cut interest rates. If anything, the rally in bonds and stocks has stimulated the economy and ... (full story)