Fed Won't Follow BoC And BoE
Are US rates overreacting to developments abroad? Below is an excerpt from JPM's bond strategy boss, Jay Barry:
“Inflation developments have been global in nature and inflation is indeed proving to be less transitory than previously expected, but our understanding of the Fed’s reaction function as well as our view on likely compositional changes on the FOMC leads us to believe that the Fed is unlikely to follow its British and Canadian counterparts in raising rates too early simply on inflation concerns.”
Let's see how this plays out, but the 2 year continues rising today again...
“Inflation developments have been global in nature and inflation is indeed proving to be less transitory than previously expected, but our understanding of the Fed’s reaction function as well as our view on likely compositional changes on the FOMC leads us to believe that the Fed is unlikely to follow its British and Canadian counterparts in raising rates too early simply on inflation concerns.”
Let's see how this plays out, but the 2 year continues rising today again...
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