Get the best daily market and macroeconomic commentary anywhere for less than $7 per month.
Already have an account? log in
Fed Effectively Announces November Taper. Nobody Cares
The onset of the taper could begin as early as November.
That was one takeaway from the September FOMC minutes.
Officials discussed a simple "illustrative tapering path," which generally conforms to market expectations, or at least to market expectations as recalibrated over the past two or so months. The path features monthly reductions of $10 billion in USTs and $5 billion in MBS.
Consistent with Jerome Powell's remarks from the post-meeting press conference, the minutes noted that "partici
By extension, does that mean no-one cares that short rates’ liftoff has implicitly been pulled forward as well?
2Y/10Y is 120 bp, a 60 bp move on each end and we get to nervously debate yield curve inversion – again.
Regarding employment and the child care concern. If only there were some piece of legislation out there that could address that concern. Oh right, the BBB plan provides universal child care but will never pass because partisanship is more important than progress.