By: Gary Tanashian of biiwii.com
Not enough inflation. That’s what the Fed is saying yet again.
“Inflation has continued to run below the Committee’s 2 percent longer-run objective, partly reflecting earlier declines in energy prices and in prices of non-energy imports. Market-based measures of inflation compensation remain low; most survey-based measures of longer-term inflation expectations are little changed, on balance, in recent months”
The problem is, that like their innovative friends at the BoJ, which apparently thinks it is going to now engineer the Japanese yield curve into an inflationary environment, the US Fed is too heavily involved in the Treasury market. So I ask you if just maybe the signals they are looking for in bonds are all screwed up by their very presence in bonds, 24/7 and 365 since 2008? Hello Op/Twist… Continue reading "FOMC: Not Enough Inflation, Folks"