Posted To: MBS Commentary
The Fed had a chance to soothe the stock market today by doing “something dovish” with respect to monetary policy or even forward guidance. “Something dovish” might have looked like any of the following: abstaining from hiking rates (which was never really going to happen) making some adjustment to their reinvestment policy (slightly more within the realm of possibility) SAYING something reassuring about the economy and the friendly path of interest rates or bond-buying (totally possible) The Fed did none of the above. In fact, they said disconcerting things about the economy (granted, nothing too severe) in their economic projections, calling for slower growth in 2019 and stagnant inflation. While they did decrease their rate hike outlook pace, it wasn’t by as much…(read more)
Via:: MBS RECAP: As Good As It Could Have Gone For Treasuries
