By John Rubino – Re-Blogged From Dollar Collapse
People who assumed the Fed, along with the rest of the government, would cave the minute the financial markets got a little choppy turned out to be right. A couple of bad months and the “normalization” of both interest rates and the Fed’s balance sheet have stopped cold. Now the markets expect falling rates and (apparently) rising asset purchases. From today’s Wall Street Journal.
Debt Investors Embrace ‘Upside Down’ World After Fed Shift
Signs that the Federal Reserve may be done with its yearslong campaign to raise interest rates are sending ripples through fixed-income markets.