Posted To: MBS Commentary
Today is Fed day and naturally, that’s where 100% of the focus has been and will be. Markets are convinced that the Fed will remove the word “patient” from the statement and that the removal is meaningful. Funny thing about markets though… in this case, they’ve already “written” that part of the FOMC statement. It’s so widely-accepted that “patient” is going away that the biggest surprise would see it remain. It would also reflect very poorly on the Fed to be given such an open door (via the widespread consensus) to begin evolving their verbiage toward the removal of accommodation, and to do nothing with it. More importantly, does “patient” even matter in the first place? No, no it doesn’t. It never did, and neither did the good old…(read more)
Via:: MBS Day Ahead: Is The Market Too Far Ahead of a Predictable Fed?
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