And BMO's Lyngen said further that..........>

US VIEW: And BMO's Lyngen said further that "higher policy rates have

historically led to lower inflation, ight? The 'mystery' identified by Yellen

within the core-inflation trend certainly holds true, if one assumes that

unemployment below 4.5% must be inflationary, but the disconnect between

improving employment and benign wage growth goes a reasonable distance in

explaining why core inflation has remain subdued, at least to us." 

- He adds that "the counterargument that we're in a lower productivity

environment only holds true if modest wage growth translates into realized

inflation, and it's the absence of that follow-through that leaves us

increasingly worried that the FOMC might be in the midst of committing a policy

error."

- He adds "chatter that" former Fed Gov. Warsh "is now the front-runner to

replace Yellen next year" as Fed Chair "only serves to further elevate those

concerns, as he has long been critical of QE and is believed to favor a more

hawkish policy stance."