“Patient” Fed’s Other Problem: A Third Of Traders Today Have Never Witnessed A Rate Hike
by Tyler Durden
ZeroHedge.com
01/28/2015
2014 was “relatively easier,” as the pre-determined pace of tapering had The Fed on auto-pilot last year. However, as WSJ’s Jon Hilsenrath warns, Janet Yellen ’s job is about to get harder. Hinting that The FOMC is likely to remain “patient” in deciding when to start raising short-term interest rates later this year (and markets have started to price in lower for longer-er following recent macro weakness domestically and abroad). Juxtaposed against a mixed picture of the economy is concerns of being boxed in at ZIRP should another economic downturn arrive. However, as III Associates notes, it is the communications challenge for The Fed that is most problematic, “it has been nine years since the last rate hike, and I’d estimate about a third of those working on trading floors have never witnessed one.”
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