Fed’s Blackout &Foreign Bond Buyers

The Fed has cut the federal funds rate more than enough. Further cutting in December, which the financial markets expect, could send one side of the Fed’s dual mandate in the wrong direction, since inflation remains sticky, while the labor market remains strong. Today, Eric examines the weak rationale for cutting further and the potential consequences doing so could hold. … Also: Why the 10-year Treasury bond yield is slightly lower than we expected.