Posted To: MBS Commentary
Today's Fed announcement was decidedly more downbeat than the previous iteration and markets reacted accordingly. There was never any real chance that the Fed would actually hike rates this time around, so we can be sure the reaction was purely a function of the Fed's chosen verbiage. Here are a few examples of the downgraded verbiage. These are subtle in and of themselves, but as far as Fed announcements go, this is about as much of a shift as we see without an accompanying policy decision: The Fed changed from viewing economic activity as "expanding at a moderate pace" to "slowed late last year." The Fed now says that fixed investment is "moderate" as opposed to "solid." The Fed now says that inventory investment has slowed. The Fed now says...(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/1OQnfpl
No comments:
Post a Comment