Fed Policy, Too Much, Little, or Just Right?
The bond market is the barometer by which Fed policy is measured.
Setting a just right interest rate generates modest growth and modest inflation.
Too low of rate, the Fed falls behind the curve and inflation becomes the problem.
Too high, the Fed moves ahead of the curve and lack of growth becomes the problem.
A just right environment favors LQD, too low TIP, too high IEF.
The winner today is LQD, but when (not if) the Fed going forward makes a mistake either way you'll be the first to know.