Cohn or Yellen? Bond traders say same difference

https://www.bloomberg.com/news/articles/2017-08-27/cohn-or-yellen-bond-managers-of-1-trillion-say-same-difference

Bond traders are betting that no matter who’s leading the Federal Reserve come February, policy makers won’t stray from the path they’ve been laying out for months.

With Janet Yellen coming off what may have been her final address as Fed chair at the central bank’s annual Jackson Hole gathering, investors are starting to look ahead to who might follow her. The clear front-runner, judging by a survey of economists: White House adviser Gary Cohn, whose fate roiled markets this month when rumors swirled that he’d resign over President Donald Trump’s response to a violent white-supremacist rally. Once it became clear he was staying put, markets settled down.

Whether Trump nominates the former Goldman Sachs Group Inc. president or reappoints Yellen, investors overseeing more than $1 trillion in fixed-income assets see little change in the Fed’s course: a drawn-out process of trimming its balance sheet and raising interest rates. And they’re putting money on that view, with positions that are at least neutral — if not outright bullish — on the $14.1 trillion Treasuries market.

“I see a Cohn Fed and a Yellen Fed not being terribly different,” said Steve Bartolini, portfolio manager of inflation-focused strategies at T. Rowe Price Group, which oversees $204 billion of fixed-income assets. Because of that, and the outlook for growth and inflation, “our portfolios have been much more focused on adding duration as we moved into the third quarter.”

The bond market’s perception of Trump’s Fed pick wasn’t always this rosy.

As a candidate, the Republican slammed Yellen’s Fed, saying it was keeping rates low to benefit Barack Obama, leading some to speculate Trump would nominate a more hawkish Fed chief. Yet now such an approach might work to his disadvantage, given his administration’s goals of cutting taxes, increasing infrastructure spending and spurring exports: Higher borrowing costs, which could boost the dollar, would impede those efforts.

———-

bond traders are correct..(((they))) are the same..

“Whether Trump nominates the former Goldman Sachs Group Inc. president or reappoints Yellen, investors overseeing more than $1 trillion in fixed-income assets see little change in the Fed’s course”

goldman sachs..what a fucking surprise..

“I see a Cohn Fed and a Yellen Fed not being terribly different,”

401

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~ by seeker401 on August 29, 2017.

3 Responses to “Cohn or Yellen? Bond traders say same difference”

  1. Humans with a conscience [whistle blowers] who want to come forward need to know that we the people are with them.

    http://www.geoengineeringwatch.org/new-cia-agent-whistleblower-risks-all-to-expose-the-shadow-government/

    • deep state wants them categorised as traitors..

    • Note of interest: He makes the distinction between the “shadow government” and “deep state”.

      shadow gov’t: back to JFK; secret part of gov’t (CIA, NSA, parts of the Department of State, etc.); works in secrecy; rules deep state; runs by fear and intimidation

      deep state: massive financial matrix; Military Industrial Complex; same matrix as shadow gov’t, but shadow gov’t rules deep state by secret manipulation; runs by money (power and greed)

      That is just the first eight minutes of an hour video.

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