Is the Fed Taking the High Road or the Low Road?

It's a question whether the Fed takes the high road or the low road perverbally and literally with rates. What you're suggesting by moving to those higher rates is a more methodical, very drastic rationalization of return expectations, risk assumptions, spread assumptions. So there is very much a recalibration that would go on, tightening conditions. And you might actually see some breakage at that point in time. But I also think that what you're hearing clearly from the Fed is going to be a digestive situation where they're going to digest the data.