We understand that…technically…the Fed Chair is “just one vote” on the FOMC, but the rhetoric that has developed surrounding this idea is getting ridiculous. The Fed Chair is enormously influential…so let’s get back to reality on this subject.
The line of least resistance is still higher, but we’ll likely need more of a pullback than we’re seeing this morning in crude oil and long-term bond yields…for any further advance to become a significant one.
Keep an eye on the yen. If today’s huge move continues, it could/should have an impact on the level of net liquidity sloshing around the system.
