real-time news and commentary for investors
Friday, Aug 23
Bullard: No reason to hurry taper
- The Fed can afford to be deliberate, St. Louis Fed chief Jim Bullard - speaking from Jackson Hole - tells CNBC. His dovish stance on the taper isn't news, but stands in contrast to Dennis Lockhart. Speaking earlier from the resort, Lockhart indicated his comfort with commencing the taper in September.
- Bullard's concern (a valid one, it appears) is that - in the market's mind - tapering and tightening are seen as one and the same. Indeed. Short-term interest rate markets are pricing in a Fed Funds rate 125 bps higher in September 2015 than now - either a great buying opportunity in fixed-income or the FOMC is not to be believed in its insistence of ZIRP deep into 2015.
- Short-duration Treasury ETFs: SHY, SHV, IEI, BIL, TUZ, FIVZ, DTUL, VGSH, DTUS, DFVS, DFVL, SST, ISTB, TBZ.
- Broad fixed-income: AGG, BND, LAG, SCHZ, BOND, SAGG, MINC.