"We have a U.S. Fed policy calibrated for an outright economic depression," writes David Rosenberg, curious if the central bank's PhDs are hearing the same earnings call optimism he's hearing. He scratches his head over what appears to be a key task of the coming Yellen-Fed - raising the labor-force participation rate. Does the central bank really have the power to turn around a secular phenomenon?
Treasury yields are enjoying a nice run (lower), but there's not much left short of a return to outright deflation scare - a concept Rosie can't grasp given the dollar's decline to nine-month lows.
Sluggish payroll growth needs to be taken in context of federal employment slipping to the lowest point in nearly 50 years.