The Fed confirms its move to forward guidance and permanent zero

Today’s commentary
Recently, I wrote a series of posts predicting that the Fed would give up on QE and move toward forward guidance in order to be able to normalize policy. Nevertheless, I have also been saying for quite some time I believe the US zero rate policy is ‘permanent’. There are big implications from this for markets, risk, asset allocation and banks. Yesterday, we finally got an extraordinary confirmation from two Fed papers that the Fed is indeed going for forward guidance. But the...

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