US Economy

The WSJ has some concern for a steepening climb in Libor interbank lending rates: Libor has been rising for the last two years as the Federal Reserve has tightened interest rates.

Cross-posted from Tim Duy: Fed speakers continue to reiterate that policy remains on a gradual path of tightening.So far, the inflation data and brightening economy has more emboldened their commitment to gradual rate hikes than a faster pace of hikes.

My brain hurts: US President Donald Trump suggested on Wednesday that arming teachers could help prevent massacres such as last week’s mass shooting at a Florida high school.

Goldman says so: Marina Grushin: Welcome to the Top of Mind podcast.

DXY was strong Friday night after hitting new lows.

Via Moody’s: Declining Default Rate Offsets Drag of Higher Interest Rates Corporate bond yield spreads have been relatively steady throughout recent equity market tumult.

DXY cratered to new lows last night: But the AUD fell as well against everything: Including EMs: All it took was one thinning jobs report.

Meh, from Westpac: Market inflation expectations have trended higher over the past two years.

And in a boom be bullish!

Goldman on firming US inflation before tonight’s CPI: Using our top-down and bottom-up core PCE models, we project that both macroeconomic fundamentals as well as sector-specific factors are likely to push core inflation meaningfully higher this year.

Nice wrap today from Shae Russell: A decade ago, outside of investment banks, almost no one knew of derivatives. Few people had heard of collateralised debt obligations (CDOs) or credit default swaps (CDSs).