You couldn’t fault Wall Street for envisaging a bit of Hamlet in Jerome Powell at the Federal Open Market Committee’s June policy meeting this coming week:Therein lies the question that the interest rate-setting Fed committee needs to answer for financial markets on Wednesday, at the conclusion of the FOMC’s two-day gathering.
The Fed meeting comes against the backdrop of growing evidence of pricing pressures building in the economy as it recovers from the COVID pandemic of the past year and vaccination rollouts allow businesses to return to some semblance of normality. Is isn’t clear exactly however what transitory means — months, years ? How long are elevated levels of inflation to be tolerated before market participants and the Fed lose patience with inflation that undermines asset prices?
The Fed may talk about talking about tapering in June and by August or September begin the work toward a roll back. “Additionally, why the Fed continues to buy $40 billion in mortgage securities every month when the housing market, by all accounts, doesn’t need that support. Will we get that clarity? Probably not,” he offered.
Watch the bond markets carefully folks. It’s a ticking time bomb. I’ve reached out to members of Congress a few months ago to express my concerns. Citadel BlackRock SenWarren RepChuyGarcia SenSherrodBrown RepMaxineWaters SenSanders RepAOC
Trust me I'm from the govt..I'm here to help!!
Keep beating against daddy pow and watch ya ass go broke