The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Tuesday, March 1, 2011

US bond market inflation expectations now above target

From Gavyn Davies:

"On that front, Mr Dudley may not be on such secure ground. Inflation expectations in the inflation protected part of the bond market have now risen from the subdued levels seen in mid 2010, so they are now back above the Fed’s 2 per cent inflation objective. It would not take much of a rise in inflation expectations to challenge Mr Dudley’s promise that “no-one on the FOMC (Federal Open Market Committee) is willing to countenance a sustained rise in either inflation expectations or inflation”. Maybe, but what exactly is meant by “sustained”? That is something which could be severely tested in the next few months."

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