First, it was The BoJ's utter collapse from omnipotence to impotence. Then came the collapse of The Fed's credibility in the short-term. And now, in the most egregious example of total central bank failure - the 'market' has priced out any chance of a rate hike through 2018... and in fact, there is now a greater chance of a rate-cut (than rate-hike) into 2017.
Based on the Eurodollar market...
And while some hoped that Janet would clear it all up in 2 days of testimony, she just made it worse:
- YELLEN: OUTLOOK HASN’T SUFFICIENTLY SHIFTED TO WARRANT RATE CUT