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MBS Day In advance: Suddenly, The Fed Isn&#039t Looking Too Mad

Posted To: MBS Commentary

If you imagined last 7 days&#039s Fed announcement was shockingly dovish/helpful/worried, you weren&#039t by itself. When compared to the “constant-as-she-goes” December announcement, January&#039s marked an abrupt shift. Whereas the Fed was mountaineering a number of extra periods, they had been abruptly done mountaineering (possibly). Whereas they had been conversing about getting nowhere close to reopening the floodgates of bond keeping reinvestments, abruptly , they&#039re promising large news on that subject at the upcoming assembly. Shares and bonds naturally appreciated the extremely market-helpful Fed (lessen costs and extra bond shopping for!), but the justification supplied–global advancement issues and uncertainty encompassing fiscal developments–didn&#039t fairly incorporate up. Two times afterwards, a slew of economic details proposed the Fed was getting…(read extra)

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