The S&P 500 dropped 1.3% on Friday; many accounts attributed the drop to Fed statements indicating an accelerated pace of rate hikes (especially Bullard’s comment), presumably in response to prospects for higher than previously anticipated inflation. Interestingly, market indicators on Friday are not supportive of that interpretation. Figure 1: Five year inflation breakeven calculated as … Continue reading The Five Year Inflation Breakeven, the S&P500 and the Dollar