US Federal Reserve

Via Scotiabank's Guy Haselmann,

Rapidly Standing Still

With the market now predicting virtually zero rate rate hikes for the rest of 2016...

... the Fed will have to take a machete to its next exercise in erroneous groupthink known as the "dot plot", when it will have to admit it was dead wrong about the state of the US and global economy.

It appears The ADP Employment report was not good enough to support fed rate-hikes as across the majors, traders are selling USDs... Gold is also surging. It appears someone is betting large that this week's payroll data will be weak...

Dollar is being dumped against the majors...

And gold is bid...

As Bloomberg reports, ICE's U.S. Dollar Index has tumbled from an almost two-month high set on Jan. 29, when the Bank of Japan’s decision to implement negative interest rates drove investors into the greenback.

Ten years after the Greenspan Fed

Written by Peter Diekmeyer (CLICK FOR ORIGINAL)

Ten years ago this week, Alan Greenspan left his post as head of the US Federal Reserve, facing disgrace among hard money advocates, which largely persists to this day. 

Over the past year, and certainly in the aftermath of the BOJ's both perplexing and stunning announcement (as it revealed the central banks' level of sheer desperation), we have warned (most recently "Negative Rates In The U.S. Are Next: Here's Why In One Chart")  that next in line for negative rates is the Fed itself, whether Janet Yellen wants it or not. Today, courtesy of Wolf Richter, we find that this is precisely what is already in the small print of the Fed's future stress test scenarios, and specifically the "severely adverse scenario" where we read that: