UBS On-Air: Paul Donovan Daily Audio 'Exuberance and the Fed'

A single, dubious quality US data report last Friday was enough to send bond and equity markets into paroxysms of delight. One month’s employment report should not trigger market moves of this degree. It is easy to put all the blame for this on the exuberance of traders, but Federal Reserve Chair Powell’s mantra of “data dependency” means investors will naturally elevate imprecise short-term data releases into the arbiters of US monetary policy.