Opinions expressed herein are those of Brett Ewing and S. Lance Mitchell and do not represent those of Centaurus Financial, Inc.
Recent FED Commentary is Meant to Muddy the Waters
- We believe the recent commentary by several FED officials advocating a return to rate increases in April is a façade to control market expectations
- The FED is tired of the everyone to one side of the boat and then everyone running to the other side of the boat mentality that has dominated market interest rate expectations throughout the past year
- Just before the end of 2015 the widely held expectation was for four interest rate hikes then with a two month market selloff rate expectations were pushed forward an entire year
- To get away from extreme expectations one way or the other the FED seems to be attempting to muddy the water which will not allow participants to feel too confident betting hawkish or dovish keeping any potential unwinds to a minimum and lowering volatility due to interest rates
- We continue to believe the FED is focused on the dollar liquidity struggle happening around the world and there will be NO rate hike in April
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