Unlike some Fed policy makers, Fed economic staff have been downplaying the significance of recent yield curve flattening.The ongoing yield curve compression (the narrowing difference between short-term and long-term Treasury yields) has become a key focus for Federal Reserve (Fed) policymakers. Several Fed researchers have released notes dismissing some policymakers’ anxiety about a flattening yield curve, the latest coming from economic staff at the San Francisco Fed.Some of them,...
Read More »Weekly view—The Fed steams ahead, regardless
The CIO office’s view of the week ahead.Trade disputes between the US and almost everybody else are reaching a climax, with US tariffs on imports prompting inevitable retaliation. Things could get worse before they get better, if President Trump puts his words into action. At this stage, global growth indicators are still flashing green and we have some hope that tough negotiations will yield to trade deals, but trade is a risk to upbeat scenarios for global economy and markets alike.It is...
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