InternationalMarkets & Economy

Financial markets rattled, but maintaining appearance of calm

The Federal Reserve will meet this week, but it's unlikely to raise rates
  • The Federal Reserve meets this week, and anticipation tends to freeze things.
  • Nobody expects the Fed to hike this week, but the June meeting is under some consideration in markets.
  • It’s a big world out there, but more interlocked financially than ever.

Financial markets are rattled, but maintaining the appearance of calm. I should say the people in the markets are shaky, very much aware of unsustainable and fatal trends overseas, but their emotionless (and soulless) computers maintaining pretenses. The Fed meets this week, and anticipation tends to freeze things. Long-term rates did rise last week, but a small thing, just bouncing up again from a repeated 10-year T-note low near 1.70 percent -- the second bottom there this year, and fourth since 2013. Mortgages inched from 3.75 percent to 3.875 percent depending on the usual qualifiers. Nobody expects the Fed to hike this week, but the June meeting is under some consideration in markets. Eric Rosengren, president of the Boston Fed, has since 2008 gotten my vote as best of the lot. In that August, he was the first to understand that a year’s frantic Fed easing had been more than offset by the shutdown of credit in markets. He has been skeptical of optimistic forecast...