Two Fed policymakers grabbed the microphone last week to warn that 1) Interest rates will likely need to rise sooner, and by a larger magnitude, than observers believe and 2) Volatility is way too low and complacency is way too high.

That means we’re facing a new, clear and present danger … the danger that policy gets even tighter, with more aggressive tapering of QE, earlier-than-expected or bigger-than-expected interest rate hikes, or both.