Price pressures are headed lower and the Fed must do everything to prevent deflation, Dick Fisher says. The Fed will have to tighten rates and shrink its balance sheet someday, but right now that is not the issue. It takes time to restore confidence once its lost, he says. its on the mend, but has a long way to go.
Oil prices retain their downward trajectory tjis afternoon, trading near $38 while bond yields trade at their lows for the move. 10s trade at a skimpy 2.05% yield after Fisher’s defense of quantitative ease.
EUR/USD consolidates just below 1.43 while USD/JPY has pulled back after stalling at 90.00/ It trades now at 89.45.