Is the Fed Losing the Dot? - BAML

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Guatemala) - Analysts at Bank of America Merrill Lynch explained the Fed's "print & regulate" mantra has boosted Wall St.



"The longer it takes for growth and rates to normalize, the greater the risk of speculative credit excesses (and a policy response to curb speculation)”.



“Our base case remains higher growth/yields/$. Bank lending & small business confidence hint at H2 macro & rate normalization”.



“If so, expect an autumn correction in risk assets (hence "I'm so bullish, I'm bearish"). Either way, volatility will rise”.



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    EUR/USD Technical Analysis: Stalling Below 1.10 Figure

  2. Forex News

    Year-end target for EUR/USD to parity - BofA

  3. Forex News

    Trading Video: US Dollar and Stocks Follow the Path of Least Resistance

  4. Forex News

    Top Events this Week Include EZ CPI, Canadian GDP, and US NFPs

  5. Forex News

    Strategy Video: Should the Fed Lead the Next Monetary Policy Phase, Again?

Trading Center