Wednesday, April 23, 2014

The Fed's Farcical Forecast Fiasco

By Tyler Durden

The chart below... summarizes 5 years of Fed "forward guidance" on that most critical of variables - the Fed Funds rate...when it comes to central planning, the economists that now openly control the bond and stock market and increasingly more of global capital flows, have absolutely no idea what tomorrow brings:

And some amusing cover from Bank of America to justify this disaster:
in each of the last three business cycles, the market consistently mispriced the Fed, expecting rate hikes much too early. Let’s take a look at the forward curve after each FOMC meeting in the most recent period. Until the Fed announced “calendar guidance” in 2011, the markets always saw Fed rate hikes just around the corner. More recently, Fed attempts to guide the markets have flattened that curve.
So... is this Bank of America's attempt to validate curve flattening (and soon inversion) as bullish? Sure, why not.

The above originally appeared at ZeroHedge.

1 comment:

  1. The hard money people have predicted hyperinflation for 6 years. Nobody has been more incorrect than the anti-Fed crowd.