FED No more baby steps

Last year, Fed chairman Alan Greenspan suggested that as interest rates rose, only those desirous of losing money would maintain leveraged bets in the bond markets. In fact, the carry trade has actually increased this year despite rising interest rates. The reason for this has been the extraordinary predictability of future interest-rate changes. The Fed is now going to stop giving strong hints on the direction of future interest rates. At last, the end of the trade that made Wall Street much of...