The Fed is Screwed

The human mind always wants to find a narrative to explain why patterns exist. Often times, the narrative is only constructed with hindsight, and back fitted to explain why markets move the way they do. Markets rally? Because weak European economic growth means more stimulus. Markets fall? Because of weak European economic growth. I reference Europe here because that data has largely been more negative, and recent action in Germany's bond market is being used as the excuse for why Treasury yields in the U.S. are falling.