In hindsight, it seems that the US bond market knew something that the rest of us are just starting ...
In hindsight, it seems that the US bond market knew something that the rest of us are just starting to grasp: the economy really is slowing. The 5.3% growth rate in the second quarter was a head-fake, providing fodder for those who were looking for a reacceleration in economic growth in the second half, just as in 1998 and 1999. The gap, more like a gaping hole, in the argument was the federal funds rate, which is 175 basis points higher than it was a year ago. Everyone obsesses about Federal Reserve policy, but when it comes to the rate the central bank sets, few seem to think it matters...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes