So FOMC rolls over on Uncle Buck, secure in the knowledge that it is playing with the house’s money for now. USD could drop a long way before anyone would get overly concerned about it. So in standing down, they have managed to play their own game of global Whack-a-Mole with the currency while continuing to have credibility (waning though it is) vs. their counterparts.

It will be interesting now to see if inflation signals start to percolate. I have remained cautious on the ‘inflation trade’, taking it as a bounce and little more. But if these clowns keep it up we are going to have a genuine inflation effects bonanza on our hands down the road.  Here are a couple of things to watch for signals.

Commodities vs. the stock market

TIP vs. TLT…

Trends have not changed in these and other indicators, but it would be good to keep it on watch.