James Bullard, president of the Federal Reserve Bank of St. Louis, told reporters in London that investors are penciling in a later move in interest rates than he expects and a slower pace of tightening in the months and years ahead.
Back in 2004, we had the global savings glut. The Fed thought that long-term rates should be higher, but the markets disagreed. The markets won.
How could I every figure it out when they can’t even figure it out? And mainly because there are no comments yet.
But don’t they manipulate short term rates? They can say they want long term rates higher but aren’t they always trying to bring demand forward?