Once again the narrative spewing forth from today's Fed speakers is that "the market is too pessimistic" presumably meaning the bond market because stocks are near record highs; and crucially, that despite collapsing industrial production, plunging GDP expectations, near-record inventories, and weakness in employment data that the US economy is "doing well" and that "June is a live meeting" for a rate hike... the equity market is not amused...
- *LOCKHART SAYS HE WOULDN'T TAKE MOVE IN JUNE OFF TABLE (if the S&P remains above 2000)
- *FED'S WILLIAMS SAYS JUNE FOMC A LIVE MEETING IN HIS VIEW (ooh scary!)
- *LOCKHART: MKTS MAY BE MORE PESSIMISTIC THAN I AM AT THIS STAGE (but stocks are right?)
- *WILLIAMS: WAGES PICKING UP BY MORE THAN SUGGESTED BY AVERAGES (in some magical dream place?)
Does this look like a market that is "too pessimistic" about the US economy?
Seems like bonds have been dead right all along?