Inflation expectation rises
US 5-year breakeven inflation rates -- something the Fed watches closely -- rose to the highest since at least January 2004, according to Reuters. Ten-year rates rose to the highest since May 2006.
That era wasn't exactly the 1980s but it's a sign that zeroed out interest rates might not be the right policy at the moment.
We're going to get data on US home prices and new home sales today and I suspect that a fresh upturn is coming now or soon.
