Posted To: MBS Commentary
This afternoon’s release of the Minutes from the most recent FOMC meeting make sense. They’re filled with exactly the sort of stuff markets expected to see in late January when the statement came out. The only issue was that the statement itself was read by markets as being surprisingly hawkish (i.e. less accommodative policy implications). Here are a few of the most important wires that hit with the report: RTRS – MANY FED POLICYMAKERS LEANING TOWARD KEEPING INTEREST RATES LOWER FOR LONGER, GIVEN WEAK INFLATION AND OTHER RISKS RTRS- FED POLICYMAKERS WANT MORE EVIDENCE OF CONTINUED GROWTH, SIGNS THAT INFLATION WILL RISE TO TARGET BEFORE COMMENCING RATE HIKES RTRS- MANY FED POLICYMAKERS CONCERNED THAT DROPPING THE WORD “PATIENT” FROM INTEREST RATE GUIDANCE NOW RISKS TYING MARKET EXPECTATIONS…(read more)
Via:: POST-FOMC UPDATE: Bond Markets Breathe Sigh of Relief After Dovish Minutes
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