‘Fed Put’ Back on the Table: What That Means for the Market

a sizeable tapering of their Quantitative Tightening program;: for the first time in a while the reflation thesis was challenged by a weaker suite of data clashing versus the very optimistic 5% economist expectation for 2024 US nominal GDP growth;

Summing up Treasuries and other bonds, the Fed was allowing $95 billion of bonds to roll-over its balance sheet each month.Mortgage-Backed Securities That elsewhere is due to Money Market Funds draining down the Reverse Repo Facility to buy the avalanche of T-Bills issued by the US government. Will they also replicate such a proactively dovish stance regarding interest rate cuts and start their cutting cycle in summer despite the inflation comeback we witnessed in the first quarter?The Fed would achieve that by signaling a very dovishly skewed Forward Guidance: ready to proactively ease at the first signs of weakness, while not tightening if growth or inflation pick up.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock Market Today: S&P closes lower in wild ride as Fed keeps rate unchangedStock Market Today: S&P closes lower in wild ride as Fed keeps rate unchanged
Source: Investingcom - 🏆 450. / 53 Read more »

Stock Market Today: S&P 500 rides Tesla, Apple higher; Fed meeting eyedStock Market Today: S&P 500 rides Tesla, Apple higher; Fed meeting eyed
Source: Investingcom - 🏆 450. / 53 Read more »

Market 'underappreciates' that the Fed will cut rates for one reason or anotherMarket 'underappreciates' that the Fed will cut rates for one reason or another - Citi
Source: Investingcom - 🏆 450. / 53 Read more »