Doves Rule the Nest AKA You’re Fucking Dead!

“The Fed is set to become considerably more dovish in 2013 and beyond as Evans and Rosengren become voting members. It seems unlikely that any new ‘Bernanke’ would drastically alter the Fed’s path; and so we present the ‘Doves’ path to prosperity (in nominal terms)….

Via BofAML:

The rise of the doves means Fed policy should stay easy even if the data continue to show improvement.

Over the past several weeks, the markets have focused on who might succeed Chairman Bernanke once his term as Fed Chair expires in January 2014. With President Obama winning re-election, we expect continuity in Fed policy in 2014. Meanwhile, as the end of the year approaches it is worth noting that the 2013 FOMC could be one of the most dovish in some time. Thus, market participants should be careful not to price out further Fed easing on somewhat better data.

 

Doves rule the nest”

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