GDP trade ideas
A Short-Term Agenda from Monetary Policy?The Fed turning on the spigot of monetary policy may have started out an objective to jump start growth, but is the objective for accommodation still so virtuous? Here we have the effective funds rate (proxy for Fed support) versus US growth and the S&P 500 (speculative returns).
More Stimulus Is Unlikely to Provide More Economic FuelA delay of a Fed rate hike seems to be the market's immediate concern when it comes to risk trends. Yet, as global growth cools, the expectation readily escalates to expectations of more stimulus. Yet, more quantitative easing, is unlikely to provide the backing the system needs. Yields are already exceptionally low and the positive influence on growth following the first three waves of QE faded in latter years. Should we expect more of the same in expectation of different results?
