The debt ceiling crisis has an inconspicuous victim, the U.S. bond market. The simple logic is that a U.S. Treasury default on its bonds will cause the bond investors to panic, causing both long and short term interest rates to spike. The U.S. Treasury bond holders will bear the brunt but the default would also […]
Financial markets went into a tizzy over Federal Reserve Chairman Ben Bernanke’s statement at the rate-setting panel press conference on June 19, 2013, “If the incoming data support the view that the economy is able to sustain a reasonable cruising speed, we will ease the pressure on the accelerator by gradually reducing the pace of […]