I have gradually absorbed Yellen’s comments from the Federal Reserve Meeting held earlier this month.
Have checked the figures – looked at the options and watched the bond performance.
Interesting state of affairs – in Japan – yield curve is flattening – so expected nothing more from Kuroda – Yen will advance against the US Dollar in the meantime.
Amazed that the economic history is written on Japan – and no one from the US Federal Reserve look at the consequences over the past 25 years.
Yellen in her wisdom though – has indicated rates will rise this year – yes so I expect Mother Christmas to raise the interest rates by 0.25 percent in December 2016.
This was most probably a ‘political inspiration story’ from Yellen – to offset the flak received when Trump when he stated that the US Federal Reserve was politically motivated – holding interest rates near zero.
Never mind US Bonds have peaked – so the indicators point to the fact that someone believes that the Christmas rate hike is a certainty.
Chart courtesy of Bloomberg
Then again – who believes in Santa Claus?