MBS Day Ahead: Empty Day to Think About What Just Happened

Posted To: MBS Commentary

What just happened? The Fed did some justice to the notion that they would talk tougher about an October or December rate hike if they didn't hike yesterday. There are precious few anecdotes to support that stance though. Far more defensible is the reality that no one (not that I read or heard, anyway) saw coming. This is the reality where, not only did the Fed NOT hike yesterday, but they were actually far more dovish in discussing the near-term future. About the only "tough talk" we have for the near term future is Yellen's mention of October as a rate-hike possibility. That's not normally something we would believe (because we agree the Fed isn't going to hike if they don't have a press conference to help balance the pain). But in this case, Janet saw our skepticism...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

from Mortgage News Daily http://ift.tt/1iUmRLe