MBS RECAP: Fed Wasn't Hawkish Enough to Scare Bonds

Posted To: MBS Commentary

Dovish vs Hawkish : This refers to how accommodative the Fed's policy stance might be. Have you ever seen a hawk stare down its prey? That's how a hawkish Fed looks at inflation (i.e. "I'm really close to swooping in and killing that!"). Doves, on the other hand--well... I don't know what doves do, but I know they're not hawkish! When it came to today's FOMC announcement, the Fed had a chance to send a clear signal on their rate hike intentions (if they had any). While they did dial up the hawkishness just a bit, they stopped short of the sort of overt telegraph seen in last October's meeting (when they said "in considering whether it will be appropriate to raise [rates] at its next meeting"). As such, markets (led by word-parsing computer programs...(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/2a5pkhw