Category Fed Reserve

Fed’s Inflation Gauge Hits Fresh 30-Yr High

Inflation is ripping higher and the Fed are acting like a dear in the headlights. All the whilst, today marks the sixth consecutive quarter in which the bottom-up EPS estimate increased during the first month of the quarter... a record. There's a lot of cheap money around - but it's coming at a cost; i.e. inflation

Inflation: Here Today… Gone Tomorrow?

Rates are almost certain to rise... evidenced by what we see with the 10-year yield and break-even rates.
As a result, when rates do rise, this will temper demand. However, it will do nothing to ease the supply bottlenecks across the world.

Yields Consolidate as Stocks Exhale

Stocks caught a small bid as bargain hunters started to sniff around. That's expected after a few days of selling. Yesterday I suggested that yields would likely consolidate after a furious run - and this is what we saw. The 10-year bond yield pulled back to 1.46% - down 9 basis points from yesterday's 1.55%.

A ‘Dovish’ Fed Cuts Growth but Raises Inflation Outlook

"Coming soon" is all the Fed could offer with respect to a definitive timeline on tapering their $120B monthly asset purchases. Suitably nebulous if you ask me... but the inflation risks are real.