MBS Day Ahead: Fed Hard at Work Dialing in Porridge Temp

Posted To: MBS Commentary

If you're not familiar with these terms, you'll need the following definitions for today's commentary: hawkish/dovish . The Fed is a key ingredient in the market movement outlook going forward. This isn't to say that they will decide which way the market is going to move in the long run (that's the job of economic data, trade war developments, etc), but they can certainly play a role in determining how quickly markets get wherever they're going, and whether or not we see volatility in the process. With that in mind, the Fed appears to be in a state of transition with respect to its message. Investors (read: the stock market) criticized them for being "too cold" in December ( here's our coverage ). Then in January, the Fed was arguably "too hot"...(read more)

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