ricardian ambivalence

Fed on hold to 2012 as deflation fight looms

Forget Hoenig, the Fed isn’t going to raise the funds rate in 2010, and is unlikely to do so in 2011 either. The Fed has a deflation fight to fight, and the battle looms closer than most think. I’m a buyer of TYH0 at friday’s night’s close (118*10, target 120, stop 119). risk reward is with longs – good data doesn’t prove europe is out of trouble, but bad data will make everyone quake.