Finally, the Long Awaited “Commercial Signal Failure” is Nigh!

by Andrew Hoffman
Miles Franklin

Following Wednesday’s all-out Fed capitulation – that not only are no “rate hikes” in the offing, but likely, never will be (LOL, Peter Schiff said “an alien invasion is more likely than a July rate hike”), I taped a MUST LISTEN audioblog titled “it’s official, Central banks are dead.” As validated by St. Louis Fed President James Bullard’s stunning admission Thursday – yes, the same James Bullard who less than three months ago, said the next rate hike “may not be far off” – that the Fed’s “updated rate path” is “essentially flat over the forecast horizon.” And that…drumroll please…he now anticipates just one rate hike, to a terminal point of 0.62%, by the end of 2018! If you ask me, even that uber-dovish view overstates what will actually occur, given that money market odds now put a negative Fed Funds rate in 2017 at more than 50%.

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