Yep yellen speaking soon and the markets are worried that she might raise rates for the second time in 10 yearsssssss, yes you heard right, 10 years....you can tell how weak the economy really is because if a second .25% raise in rates is being questioned you just have to understand how close we must be to a spiraling downward recession.... What a fu$king joke this market is ....everyone knows the fed isn't moving in September. If the markets are crying over a .25% rate increase what does that tell you?
Four Ways to Reform the Fed Aug 30, 2016 7:00 AM EDT By Narayana Kocherlakota The expanding responsibilities of the U.S. Federal Reserve have prompted numerous calls for reform, ranging from intrusive audits to outright abolishment. I disagree with most of the proposals, but I do believe that the central bank would benefit from some changes -- four, to be exact... https://www.bloomberg.com/view/articles/2016-08-30/four-ways-to-reform-the-fed
FFFs @76% chance of a hike in September. I find it hard to believe it, but the FED will raise on that. Anything above 65% is might as well be 100% http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html
Thanks. Sorry I made a mistake. The probability on the CME site are not of a hike, it is of a target rate. So then I am not confused after all.
Brainard speech in Chicago imminent. Since this is the last speech before the actual meeting, it carries weight and the next hour could be volatile. I maintain there is close to zero chance of a September rate hike, and maintain there is a near certainty of a December one, with a non-zero probability (in my mind) of a .50 basis hike in December. https://www.federalreserve.gov/whatsnext.htm
Note that VIX has not budged much in spite of a strong rally in SPX and the VIX futures forward curve is sloping upwards.