How a fallible Fed’s limitations will be exposed
Before anyone reads too much into the Fed’s actions today, do not forget the blindingly obvious: the Fed wants to impart a dovish long-term message on rates, not least because they do not wish to encourage an even faster tightening of monetary/financial conditions than already seen.
Today may tell us only a little about the Fed’s ability to re-exert control over the back-end of the curve, but they are fighting two important bearish forces that will prove difficult to shake-off, including:
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Deutsche Bank