MBS Day Ahead: Back to Things That Matter

Posted To: MBS Commentary

Yesterday's FOMC Announcement was largely a diversion, but only because there happen to be more important things going on in the bigger picture. The FOMC was still important in that it confirmed the Fed is paying attention to reality and not unwilling to constantly evolve its outlook based on that reality. Some would say the Fed perennially overestimates economic potential and then revises outlooks. Those folks are right. The Fed obviously does this, but these critics also tend to assert the Fed is doing this purposefully. No... They just don't know any better. A lot of older, more well-to-do folks and a lot of people who rely more on academic models to understand the economy are in the same boat. They're not in touch with the true nature of the broader malaise that's been with...(read more)

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