Everything was pretty much as expected, the one thing they did add was the target rate of 6.5% unemployment as a metric for policy adjustments so they have started to move away from date based guidance to economic based targets. This is something the market doesn't like much, but the fact they gave guidance of 6.5% unemployment takes some of the uncertainty and sting out of this movement away from date based policy and toward economic based policy such as asset purchases and F_E_D Funds target rates.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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