Posted To: MBS Commentary
Yesterday marked a fairly big adjustment in the Fed's monetary approach to the same old underlying economic realities that were in place at the time of their last meeting. Granted, we have had the government shutdown come and go in the intervening time, but that's about it , and the Fed said they don't expect any lasting GDP impact there. So while the Fed CAN move markets because it's acting as some sort of bellwether for underlying economic realities (i.e. "if the Fed's worried, I'm worried too!), in this case, the Fed is moving markets simply because it changed the lens through which it's viewing those economic realities and this lens is much friendlier for both sides of the market. If traders were genuinely viewing the Fed announcement as a wake-up call about...(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://bit.ly/2Tp0m3V
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