But even normally pessimistic bond traders realize it’s too soon to be pricing in a recession. ( Manuel Balce Ceneta / The Associated Press )STOCKS AND PICKUP TRUCKS Like bond traders, stock traders seem to be re-evaluating their extreme pessimism. That’s largely due to tighter monetary policy by the Federal Reserve, which has now raised its target for the federal funds rate nine times since December 2015. Assets in money market funds surged by $155.5 billion in the fourth quarter to $3.04 trillion. The expected trajectory of rates in 2019 shifted a bit lower, as did estimates for the neutral and terminal federal funds rates.

Source: thestar January 08, 2019 22:41 UTC