Following disappointing CPI prints for two months in a row, even such stalwart believers in the Fed's tightening cycle as Goldman Sachs (recall Hatzius warned recently that the Fed may need to "shock" markets to tighten monetary conditions in light of the S&P relentless grind higher despite rising rates) are suggesting that the Fed's rate hike trajectory for the rest of 2017 is suddenly in question.
Via Global Macro Monitor,
“Tightening is Easing”
Submitted by Mark St.Cyr,
In about 30 days the Federal Reserve will hold its scheduled June (13-14) meeting of the FOMC to either give a thumbs-up, or thumbs-down to increasing interest rates in earnest once again. The odds that the Fed. will indeed raise again now stands at about 99%. In other words – it’s all but a near certainty.
Authored by EconomicPrism's MN Gordon via Acting-Man.com,
Bernanke Redux
Somehow, former Federal Reserve Chairman Ben Bernanke found time from his busy hedge fund advisory duties last week to tell his ex-employer how to do its job. Namely, he recommended to his former cohorts at the Fed how much they should reduce the Fed’s balance sheet by. In other words, he told them how to go about cleaning up his mess.
Having turned over the past few months from reflationist, to increasingly skeptical of the whole reflation impulse scenario - mostly on the back of China's infamous credit impulse crashing - RBC's Charlie McElligott takes a look at the three "negative narratives" that are gradually emerging for the markets. But before listing them, here is his latest summary of where the increasingly more confused market finds itself:
From "The Battle Of Who Could Care Less" by Charlie McElligott