Markets Steady Ahead of Fedspeak Deluge
Financial markets are seeing consolidative trading patterns take hold after last Wednesday’s bold and decisive move from the Federal Reserve. The dollar is advancing off Friday’s lows, long-term Treasury yields are rising, equity futures are pointing to a healthy open, and the VIX “fear index” – a measure of expected volatility – is pushing lower, suggesting that policymakers succeeded in delivering an emergency-sized rate cut without convincing investors that an emergency is underway. This week, words might speak louder than actions. The Conference Board’s consumer confidence index will drop tomorrow, Thursday will bring durable goods orders and weekly unemployment claims,...