New Fed chief Bernanke has long been an advocate of increased transparency in Fed policy. So it was a bit ironic that the market seemed caught off guard by Tuesday's statement accompanying the rate hike. I wondered if there might be some follow up clarification by Fed members to assuage the markets, and that may have happened on Friday when Kansas City Fed president Thomas Hoenig said that he sees the Fed funds rate in the range of "upper neutrality". Fed funds futures however, are now pricing in the possibility of 2 more rate hikes, not one. The upcoming week will no doubt influence expectations as we get both the ISM reports and the March employment report. The main risk to the stock market right now would seem to be an accident in the bond market.
A report has been making the rounds the past few days about how Americans are at a "tipping point" about energy, specifically the country's dependence on foreign oil. At the risk of being glib, I'll believe it when I start noticing fewer SUVs in my oh-so-liberal neighborhood. According to the latest monthly Smith Barney Citigroup Affluent Investor Poll -
Eight out of ten affluent investors claim to be concerned for the environment, but more than a quarter of those who say they are "very concerned" continue to drive SUVs.
In Honor of the Day
One of my favorite web pages when I feel like a chuckle. The Swiss Spaghetti Harvest is probably my favorite.
