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US TSYS/STOCKS: And analyst Ian Lyngen at...>

US VIEW
US VIEW: US TSYS/STOCKS: And analyst Ian Lyngen at BMO eyed the Fed and said
that "at the end of the day, we suspect that easy financial conditions will be
used as the rationalization for another move, and we're certainly sympathetic to
the objective of taking some of the air out of any potential bubble in risk
assets (record high stocks and tight credit spreads have been driving financial
conditions). 
- "If the goal of monetary policy is to engineer a soft landing in risk assets,
gradual rate hikes (regardless of the data) is the most obvious course," he
said. "That said, policymakers have historically struggled to strike the needed
balance to achieve a turbulence-free removal of 'irrational exuberance', but we
digress."

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