The yield spread collapses to lowest since 2007.
Something is moving beneath the surface.
Yellen was right to brush off “transitory” factors of “low” inflation.
But after the last two times they blew it off, there was a “financial event.”
US is the “most indebted AAA-country” and runs “the loosest fiscal stance,” but the dollar as Reserve Currency still props it up: Fitch
Dudley to Quit. Potentially 5 vacancies to fill on the FOMC. No one knows what the Fed will look like next year.
But what’s happening with mortgage-backed securities?
Crackdown efforts by bank regulators are put on hold.
But the yield spread collapses to lowest since early in the Financial Crisis. Even the Fed is worried.
Curious things are happening on its balance sheet.