Atlanta Fed President Dennis Lockhart sounds out of touch talking about higher bond yields reflecting a strengthening economy. Long bond yields are poised to close at the lowest in nearly two months today. Ten-years are at the same levels as in August.
He called the fall in unemployment a communications challenge and says he favors a ‘qualitative’ element to the jobs threshold. He also forecasts growth closer to 3% this year.
The market is teetering ahead of tomorrow’s retail sales report and will feel much less secure if Fed officials keep talking about tapering.