Stocks in the US finished a choppy session mixed on Wednesday, as the S&P 500 ended muted, the Dow Jones rose 171 points to extend its winning streak to six days, the longest since December.
While I agree there is a great desire by all central banks to run the easiest policy possible, you must admit that virtually every comment we have heard from every Fed speaker is higher for longer. absent a clear economic downturn, which just doesn't seem to be happening, it is hard to see how the Fed can cut.
The risk is something breaks as BoJ get forced into hiking aggressively to support their ccy. A precursor to the GFC was the BoJ hikes... blowing up the global carry trade.
While I agree there is a great desire by all central banks to run the easiest policy possible, you must admit that virtually every comment we have heard from every Fed speaker is higher for longer. absent a clear economic downturn, which just doesn't seem to be happening, it is hard to see how the Fed can cut.
Is the BoJ more important than the Fed?
The risk is something breaks as BoJ get forced into hiking aggressively to support their ccy. A precursor to the GFC was the BoJ hikes... blowing up the global carry trade.