US Dollar Surge Reflects Fed’s New Path on Rates - Pain Ahead for Stocks?

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Euro US Dollar Notícia

US Dollar Index Futures,United States 2-Year,United States 10-Year

Market Overview Analysis by Michael Kramer covering: Euro US Dollar, US Dollar Index Futures, United States 2-Year, United States 10-Year. Read Michael Kramer's latest article on Investing.com

All of the talk from the Fed speakers the last few days seems to center around them going slower and being able to take their time when heading to the neutral rate.

The neutral rate, of course, is just a fantasy number that is talked about, but no one has a clue where it is. Based on the price action of risk assets, one would think that policy is easy.has risen and the labor market has loosened. So, let’s say the Fed Funds neutral rate is around 3 to 3.5%.rate and yields still have much further to climb from current levels. If the 10-year rate gets to 300 bps higher than Fed Funds, it will have to rise to at least 6%.

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