Has The Fed Lost Control? VIX (Stock Vol) Falls Below 10, TYVIX (T-Note Vol) Falls Below 4

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by Anthony B Sanders
Are markets out of control due to The Federal Reserve keeping rates so low for so long?
The VIX (Chicago Board Options Exchange SPX Volatility Index) has fallen below 10 and the S&P500 index has soared with massive Federa Reserve stimulus (aka, the punchbowl).
vixfed.png
The TYVIX (CBOE CBOT 10 year U.S. Treasury Note Volatility Index) has fallen below 4 despite Fed rate increases and their lame unwinding of their prodigious balance sheet.
tyvixfed
This bring up the question: Has The Fed lost control of markets? This is important in that it may lead the Fed Open Market Committee (FOMC) to raise rates as a faster pace, as indicated by The Fed’s “Dot Plot.”
feddotplots
Meanwhile, “inflation” remains subdued at 1.5% YoY.
fedinfj.png
We will see if The Fed is speeding up their balance sheet unwind after today at 3pm EST.
Will there be a trigger event that will bring markets crashing back to earth?
Janet Yellen better start drinking a few Tequila Sunrises if that happens.
janet-yellen-382
 
 

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