What we learned from last week's Fed rate hike

The post-election bond wreck is having a global impact
  • The degree of current Fed accommodation is “moderate.”
  • Gradually moving toward balance makes sense, but accelerating the process does not.
  • Overseas currency moves will suppress U.S. inflation and growth.

It’s a little early to call an interest-rate top. Maybe two or three or four years too early. However, looking back at the bond wreck since the election, it’s worth putting panic aside and to think for a minute or two.