- It's going to 3.1% this year and 3.75% by Q3 2014, say strategists at the bank, noting monetary policy is becoming more closely tied to whatever the headline unemployment rate released by the BLS each month is, rather than the broad U.S. economy (keeps things simple for the PhDs at the Fed).
- The lower UE rate is certain to ratchet up market expectations of a hike in short-term rates (currently nearly 125 bps between now and Sept. 2015).
- Earlier: The Atlanta Fed's Lockhart signals his comfort with tapering in September.
- TLT -0.3% premarket.
- ETFs: TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, DSTJ, DSXJ, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX.