So the theme is ‘the Fed is getting behind the curve’

That is, Yellen keeps rates ‘too low’ causing the economy to overheat.

Complete nonsense, of course, but it drives markets until it doesn’t.

Much like QE.

The 0 rate policy, including QE, remains no way supportive of growth and employment, but instead deflationary and contractionary, as evidenced by the anemic private sector credit expansion, low income growth, and ‘low inflation’. And the gaping output gap…