Posted To: MBS Commentary
Taken in and of itself, today's Fed statement was "net-hawkish." That means, relative to the last announcement, the verbiage took small but noticeable steps toward setting up an eventual rate hike. Normally a net-hawkish Fed announcement would be a bad thing for bond markets. (And to be fair, bonds did end the day slightly weaker vs pre-Fed trading levels.) But this time around, the Fed wasn't nearly as bold as they were last October, when they almost promised a rate hike in at the next meeting (by actually saying "In determining whether it will be appropriate to raise the target range at its next meeting"--something they'd never done before). As such, the Fed was able to get away with upgrading their assessment of inflation and the overall economy without doing...(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/2ffGaP7
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