The effects of the financial crisis are posing new challenges for the U.S. economy. Top officials are trying to shift the focus from the timing of the first interest rate hike to the general trend of tightening that will come with it.
The Federal Reserve seems to want to ignore the potential global fall-out as they start on a path of raising interest rates while the rest of the globe seems to be slipping back into the economic abyss.
The Eurodollar curve has spreads steepening with the pivot point of the curve moving out from June 2005 to September 2005. The market moved this pivot in when Janet Yellen suggested the Fed might start raising rates six months after the end of tapering.