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With QE being wrapped up probably quicker than most expected, some might even say aggressively, the next phase by the Fed will be to raise rates. From everything I have read from the Fed my takes is its likely the Fed will move in February so only 6 months away.
So why are longer term rates considerably lower than what they were only a few months ago?
If anything it appears interest rates will be raised sooner than previously anticipated.
So is this an anomaly or market distortion?
With pressure on labor costs my view is that interest rates in the US will need to be raised quicker than anticipated to combat a rise in inflation, which would obviously be gold positive.
Thoughts anyone? Any bond traders out there?
