It’s Friday, Two Days Before Next Week's Central Banks Galore
- Policy meetings littered with caveats but likely no surprises
- Treasury auctions, Australia jobless report also loom
Citi's Wieting: Fed Can't Anticipate Fiscal Policy
Next week strikes me as likely to be an exercise in ifs, and buts. The myriad central bank meetings will be unlikely to provide many surprises. Yet they will be littered with all sorts of caveats. The global economy may be improving in aggregate. But no one wants to claim premature victory. Let’s face it, there are so many known and unknown unknowns that what we really are doing is aiming at moving targets. There is no clear glide path.
Of course the biggest news should be the Fed’s rate hike. Remember it’s fully priced in. What isn’t is just what set of dot plots will be presented. And there’s no credible way of handicapping what the new government will do. Unless they want to adopt the attitude of the stock market and figure if we need no stinkin’ regulations it’s off to the races. Not my base case.