While the Fed decided yesterday to remain extremely ‘accomodative’ for an ‘extended period’ after its FOMC policy meeting yesterday, economies that have weathered the credit crisis best like Australia and Brazil are already into the tightening phase.  With Canada likely next to move, how much more strength do we need in the US data to get the target rate off the floor?

Extended forecast from the investment bank’s rates desk (MS via Business insider)

(110 pages)

Lehman Brothers Lays Out Potential Payouts (Reuters)

Federal Reserve Beige Book Highlights Uptick in Economic Activity (Marketwatch)

Beige Book Summary (Federal Reserve)

Robert Reoch gives a nice perspective on issues facing the derivative market (BBC)