Deutsche Bank: Fed Taking Eye of Politics, Watch For Keynesian Accelerator

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Mark Melin
Published on
Updated on
The winds are changing at the US Federal Reserve ahead of a potential Fed rate hike, a Deutsche Bank report observes, as central bankers take their eyes off politics as a precursor to future economic growth and focus on data with a Keynesian style.

Deutsche Bank on Fed rate hike – Trump to create a Keynesian accelerator, but ..

Higher interest rates and a steepening of the US yield curve have been a Pavlovian response to the potential for tax reform and fiscal stimulus to come to market. Forget the fact that the Trump administration’s recent push for a healthcare plan didn’t materialize. What is happening is a swirl of spending will create economic activity, a March 24 report from Deutsche Bank Investment Analyst Dominic Konstam, US Chief Equity Strategist Joseph LaVorgna and their North American research team theorize.

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.