Posted To: MBS Commentary
Although the Fed denies it, conventional wisdom suggests that major policy changes tend to be announced at the Fed meetings that include the post-announcement press conference with Yellen. The thinking is simple. Big changes could lead to bigger market volatility without Yellen there to answer questions. With this in mind, market participants aren’t expecting any major changes to be announced at next week’s Fed meeting. That’s probably a safe assumption. The Fed meeting is nonetheless a focal point in the coming weeks. Even if we’re not likely to see any major changes announced, there’s always a possibility that the text is changed in such a way to somehow inform a rate hike timeline. Beyond that, there actually is some incredibly small chance that we see a big change, and…(read more)
Via:: MBS Week Ahead: Limited Data and Fed Next Week; What’s The Set-Up?
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