MBS RECAP: Put up-Fed Move Extends, Furnishing Clues About What Issues

Posted To: MBS Commentary

Yesterday marked a fairly massive adjustment in the Fed&#039s monetary solution to the similar old underlying economic realities that were being in position at the time of their final assembly. Granted, we have experienced the govt shutdown come and go in the intervening time, but that&#039s about it , and the Fed claimed they don&#039t expect any long lasting GDP affect there. So although the Fed CAN move markets due to the fact it&#039s acting as some type of bellwether for underlying economic realities (i.e. “if the Fed&#039s concerned, I&#039m concerned also!), in this scenario, the Fed is relocating markets simply just due to the fact it adjusted the lens through which it&#039s viewing those people economic realities and this lens is much friendlier for equally sides of the market place. If traders were being genuinely viewing the Fed announcement as a wake-up contact about…(browse more)