#Inflation targeting

As previewed moments ago, the BOE decision was rather unexciting, and after its November rate hike - the first in a decade - which many speculated could be a "one and done", the Bank of England unanimously kept rates unchanged at 0.50% as expected. The lack of dissenters meant this was the first

The Federal Reserve’s tools for achieving its dual mandate of low inflation and full employment manipulate interest rates and therefore markets.  This manipulation of rates reverberates globally. Their manipulation historically had been more light handed and invisible to most of the public.

Over the weekend, we presented an analysis by Citi looking at how long after the yield curve inverts do investors have before they should start worrying. As Citi's Jeremy Hale noted, "sometimes inversion provides a timely signal for the economic cycle a la 2000, where Professor Curve predicted

FOMC minutes show uncertainty and concern about markets are affecting officials' decision-making - Officials were cautious when evaluating market conditions and the 'damaging effects on the economy'- Worry about 'potential buildup of financial imbalances' and a sharp reversal in asset prices'-

With a dumping dollar and collapsing yield curve since November's FOMC, all eyes are on the Minutes for any signals of The Fed hawkishly ignoring inflation concerns but instead a few Fed officials opposed near-term hikes (on the basis of weak inflation). Furthermore, several Fed officials warned of