And Now It's Time to Talk About the Fed
With today's jobs report confirming a strong labor market recovery, it's time to turn our attention back to the Fed.
It's clear that the market has adjusted and pulled forward its expectations of when the Fed will finally raise interest rates, as evidenced by the jump in the dollar and in short-term yields.
There will be a lot to chew over, but this paragraph from Ian Shepherdson at Pantheon Macro sets the tone: "With every indicator we follow screaming that payrolls will be very strong for the foreseeable future, wage pressures will intensify. We expect Chair Yellen to signal a change in the Fed's view at her Monetary Policy Testimony later this month, with 'patient' dropped at the March FOMC, opening the door to a June hike."