Coronavirus, repo market and the reserve rate: What to watch this week from the Fed

"They're going to be very careful. They attempted to do this in a stealth way, in my humble opinion, for political expediency," Shallet said. "I think that to start acknowledging that ... we're going to have to suspend the balance sheet expansion by the middle of the year, markets are not going to take that well."

"This is tricky terrain for Powell and if mishandled could be disruptive," Guha wrote. "That is why we expect only very cautious and limited comments for now, in particular given virus concerns, but see net downside risk on the day."There's also some expectation that the Fed could approve a rate hike, but not the kind that most people generally notice.

The reason is that the Fed uses the IOER as a guardrail for its benchmark funds rate. Over the past two years, the Fed has been cutting the IOER rate as the funds rate has moved to the top of its target band.

GeorgeSelgin DavidBeckworth Fed looking to hike IOR/IOER rate to get it more in line with mid range of FF rate. Or they could adopt a corridor system no? :)

😷😷😷😷😷

United States United States Latest News, United States United States Headlines

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

A Perfect Storm: Coronavirus, Major Earnings Reports And An Overvalued Market Could Slam Investors This WeekAll three major indexes recorded their worst day in months.
Source: Forbes - 🏆 394. / 53 Read more »

A Perfect Storm: Coronavirus, Major Earnings Reports And An Overvalued Market Could Slam Investors This WeekCoronavirus, major earnings reports, and an overvalued market could slam investors this week—a perfect storm by skleb1234
Source: Forbes - 🏆 394. / 53 Read more »

Jeremy Siegel says the market pullback amid coronavirus fears is a welcome 'reality check''When you're priced like this, any little stone in the way, such as the coronavirus, you're going to get a stumble,' the Wharton School professor said. Is he still alive? I’m glad people are getting sick and dying since this market is over bought. Oh brother Lagit22
Source: CNBC - 🏆 12. / 72 Read more »

'A true black swan' — stocks and oil slump as Wuhan coronavirus hammers markets - Business InsiderThe deadly virus has infected more than 2,700 people, killed 80, and spread to at least a dozen countries.
Source: BusinessInsider - 🏆 729. / 51 Read more »