The Week That Will Be (21st February 2021)

1. The Fed
If the Fed were worried about the rise in longer dated yields, this week's slated speeches would be the time to push back. Powell has his set-piece semi-annual testimony to both houses of Congress (Tues & Wed), while Clarida pops up with two speeches on the "economic outlook and monetary policy" (Wed).

But they won't. The Fed are not worried. They think this is win-win. Either growth really will be as reflationary as the market expects; if it's not, they can just peg the yield . . .

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