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With Crucial Powell Speech On Deck, Consider This ‘Key Nuance’
For markets, the week ahead will likely be defined by what Jerome Powell says about the Fed's policy framework review during a speech at Jackson Hole.
Of course, it's not properly "at" Jackson Hole this year. Rather, in keeping with efforts to contain COVID-19, the Fed's annual symposium will be a virtual, livestream event. That won't detract from the drama for the bond market, even as the format will be yet another reminder that "we're not in Kansas anymore", as Dorothy would say.
Presumably,
Ah, yield curve control. But at some point when it becomes obvious that the Fed is the major (only?) buyer, doesn’t it make sense to sell because of that rather than in spite of it? Then What?
When it becomes obvious the Fed is the major ( only ) buyer… it just makes sense to either buy more or buy different. The path Japan is going on, will provide much guidance