Reading the July FOMC minutes and the description of the current economy, it is hard to square what was being said with a zero interest rate policy. Truth is, they really can’t either. With that reality setting in among the various heads of the Fed's realm, the FOMC wants out of its policy box and to start normalizing rates as quickly as possible. Wanting to have their cake and eat it too, they want to do this without disrupting markets or general economic activity. This means lots of dovish talk, beginning with Yellen tomorrow morning in Jackson Hole, to soothe markets and keep forward curves from getting too far in front of policy.
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