The bond market's fear about Fed policy are showing up in a spread that indicates falling expectations for inflation, which is also a concern at the Fed as it could signal low growth or even a recession.
In the bond market, that means Fed policy is too tight and the Fed needs to cut rates to generate inflation.As the rest of the world slows, the U.S. economy has shown weakness but no big cracks. But one area that has been raising alarms, and one that can sway the Fed, is the market's expectation that inflation will go lower and stay there for a very long time.
"It's one of my arguments why they should be cutting ... Inflation expectations are signaling the Fed is going to miss its mandate over a long time," said Briggs.
TRUMP, The Con-Artist & Bankruptcy King's Games are Ruining US!
Xi is losing control in China. The EU has a wealth tax on deposits. All the FED has to do is set the rate at 2% & meet again in December 2020. It has no control of the rest of the world. Strong dollar is needed to disengage with China Move the supply chain. tt:MariaBartiromo
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