The Fed’s Options Have Narrowed

The futures have gone all mousey on us in recent days, with little more price movement Sunday night than a cryptic wiggle sideways. With the Fed’s crazy, daring plan for December more or less digested, discounted and smugly appreciated by the banking community, the markets are clearly wondering what the hell is coming next. You can be sure the Fed will be as unhelpful and unclear as possible as it purports to answer that question. As for the banksters, if they put themselves in a tight corner by holding the fed funds rate near zero for a few years, they are about to discover how relatively roomy that corner was.