Markets wonder if the Fed put is dead, or just resting?

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A hawkish Federal Reserve has a generation of traders questioning whether central banks have their back. There are mixed messages in the bond market.

The most lucrative concept to believe in over the last thirty years is what market commentators callIt means that after any equity market sell-off, it is only a matter of time before the US Federal Reserve comes to the rescue by easing financial conditions.

The Fed put is being questioned because both the economics and politics of monetary policy have changed. On Thursday morning,was imminent in March. The Fed will stop asset purchases and move to a substantially “less accommodative" policy setting. Now living costs are rising, at a faster pace than wage increases, and the subject of inflation, not inequality, is entering theThere’s a school of thought that financial assets have become so ingrained in the real economy that a sharemarketThe Fed also keeps an eye on financial conditions of which the currency, the cost of equity, and debt capital, are inputs.

to signs of rising inflation. Now that time has come. But the bond market is always two steps ahead .

 

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WTF ? Investors can take on risk by themselves and not rely on tax payer bailouts. Much better way to spend taxes

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