Lara Rhame
Lara Rhame
aggressive core gave inflation markets measure might modest point preferred pricing upside
I would point to the core PCE deflator, which gave a modest upside surprise. This is the Fed's preferred measure of inflation ... and might have markets pricing in a more aggressive Fed.
aggressive core gave inflation markets measure might modest point preferred pricing upside
I would point to the core PCE deflator, which gave a modest upside surprise, ... This is the Fed's preferred measure of inflation ... and might have markets pricing in a more aggressive Fed.
april bad downside everybody geared markets month retail surprise toward
If we get a downside surprise in retail sales, everybody will shrug it off. We all know that April was a bad month for the economy; the markets are really geared toward May.
higher housing last market rates situation worried
If we're in a situation where rates are higher because the economy's great, the housing market is going to be last thing I'll be worried about.
accepting buy carry changed compared dollar economy either fact fed high markets raising rates resistance rest strong stubborn
When we started the year, the markets were reticent to buy into either a strong U.S. economy or the Fed raising rates to 5 percent. What has changed is the market's very stubborn resistance to accepting the fact that the dollar has a pretty high carry compared to the rest of the world.
ahead bonds dollar euro forecast gotten markets optimistic seen signs size strength themselves
We've seen markets get ahead of themselves in bonds and in currencies as well. There are signs that markets have now gotten too optimistic about not only the size of the U.S. recovery, but the speed; our medium-term forecast is still very much of euro strength and dollar weakness.
ahead bonds dollar euro forecast gotten markets optimistic seen signs size strength themselves
We've seen markets get ahead of themselves in bonds and in currencies as well, ... There are signs that markets have now gotten too optimistic about not only the size of the U.S. recovery, but the speed; our medium-term forecast is still very much of euro strength and dollar weakness.
deficit dollar exists gloom market punishing size
I think a lot of gloom still exists about the size of the deficit and the market is punishing the dollar for that.
downward focusing growth initially markets revision seem
Markets initially seem to be focusing more on the downward revision in growth than the upward revision to the deflator.
afford cut downside fed market markets pricing rate surprise
Market expectations have priced a rate cut in. When markets are pricing it in like that, the Fed can't afford to give a downside surprise in this environment.
both carry causing currency driving funding japanese market swiss switch yields
Market expectations for both are very fluid. All of this is driving Japanese yields up and causing the market to switch from the yen into the Swiss franc as the funding currency for carry trades.
data economic european impact large markets phase scenario solid taking traders widely
We're getting to a phase where European data could have more of an impact because a solid U.S. economic scenario is so widely expected. The markets are also very thin, so traders aren't taking on large amounts of risk.
causing excited markets near
In the near term, markets are getting very excited about the idea of the end of quantitative easing, and that's causing the yen to come under some upward pressure.
hear interest market rates stock talk
Interest rates are low, the stock market is higher, and we hear all this talk about a tax-cut package,