The Fed's Emergency Lending Tools to Support the Financial Sector Are Working

The Fed has made meaningful progress in reestablishing their credibility through both higher rates but also the balance sheet rundown. Monetary policy can continue to be set by the fundamentals of employment and inflation independent of some of the contagion risk that has obviously been very thematic over the past few weeks. In the week ahead the treasury market will see a dearth of economic data certainly not much in terms of market moving potential. We do have existing home sales as well as building starts and permits which will give some context for the degree to which the recent tightening has continued to weigh on the housing market.