One scenario would be that the problems in money markets disappear before any upside risks to price stability emerge. This means that the non-standard measures could be unwound before rates are raised, and the withdrawal of the measures would not be expected to have much impact.
So, have financial markets entered a new phase of “irrational exuberance”? The Bank for International Settlement finds it “hard to avoid the sense of a puzzling disconnect between the markets’ buoyancy and underlying economic developments globally”. At the very least, it seems that financial markets are anticipating significant further improvements in economic fundamentals and prospects.