MBS RECAP: What Did The Fed Actually Change?
Posted To: MBS Commentary
What Did The Fed Actually Change? Here are the most notable changes: The vague notion of symmetric 2 percent inflation has been replaced with a specific goal of "moderately above 2 percent so that it averages 2 percent over time." They now refer to bond buying as fostering "accommodative financial conditions, thereby supporting the flow of credit to households an businesses" The Fed added that they're "prepared to adjust the stance of monetary policy as appropriate if risks emerge." That's about it! Heading into the announcement, the list above served as a baseline for almost any prediction–a bare minimum taken "as read" before discussing additional/bigger changes. The remainder of their potential impact would have to be gleaned from the updated…(read more)