Is interest rate tightening already upon the U.S.? The U.S. Federal Reserve’s Open Market Committee statement and subsequent press conference from Fed Chair Janet Yellen presented a balanced view that signs of inflation and growth are sprouting, but also that “an array of risks” to the economy and markets exist. Despite this framework, which a Credit Suisse report called “a little on the dovish side,” substantial defacto tightening is already underway, a March 17 report noted. In fact, with talk of negative interest rates all around, “we believe the Fed remains reluctant to follow other banks into negative policy rate…
Credit Suisse: Fed Doesn't Want To Go Negative As Rate Tightening Already Here
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.