FXStreet (Bali) - As noted by Kit Juckes, Global Head of Currency Strategy at Societe Generale, the US data should give the Fed just a teeny-weeny bit of a wake-up call.
"The US data should give the Fed just a teeny-weeny bit of a wake-up call. The economy is trundling along at 2.something %per annum, but rates are just too low even for that."
"Asset prices, all over the world, tell us as much. In fact, both US and UK data reinforce a pet bugbear, which is that the relationship between rates and nominal GDP growth needs to be taken more seriously."
"The only way to justify current policy settings, on either side of the Atlantic, is in a belief that somehow, super-low rates will get nominal gdp back on its pre-crisis flight path. Not going to happen, or rather, not going to happen with easy money. Structural reform may help, but sending the S&P and London house prices to the moon won't."