Larry Shover On Federal Reserve Leaving Rates Unchanged Wednesday

With the 10 year yield lower today, Larry Shover thinks the stock and bond market is saying that there needs to be more bearish conviction in the economy for another fiscal injection. The market may be telling us the fiscal stimulus is a one off transitory event and the economy needs to show better wage and GDP growth over a number of months to come. Larry thinks the FOMC is in a wait and see holding pattern and that there is huge demand for US bonds from international investors keeping a lid on long term rates.