FTN Financial Economic Weekly


Chris Low, and Rebecca Kooshak
Communication and Transparency

As we wait for Chairman Powell’s Friday speech on central bank communication and transparency, we can’t help but think the Fed is deluding itself into believing communication can prevent all financial market mishaps. This week (a day early out of respect for your Memorial Day weekend) we look back at prior tightening and conclude the Fed is likely to keep tightening until it breaks something, at which point bonds will rally in part because the Fed won’t be able to tighten as much as it currently intends.

Plus "The Week Ahead," a preview of next week’s potentially market-moving events.

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