Saturday , 16 January 2021

MBS RECAP: What’s up with the Weird Market Reaction to FOMC?

By Matthew Graham

Posted To: MBS Commentary

Today’s FOMC Announcement resulted in one of the strangest market reactions in recent memory. Explanations for the various movements abound, and most of them unfortunately contradict each other. For instance, one of the popular conclusions is that the Fed’s mention of international issues means they won’t be able to remove accommodation as quickly because the international economy is in rough shape, thus the bond market rally. Up to that point in the logic, things are fine, but then consider the massive stock market sell-off and it falls apart. More Fed accommodation should be positive for stocks. So this theory falls apart there. The next theory argued that the statement was hawkish (meaning it hearkened less accommodation than conditions might suggest). This one would explain…(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

Via:: MBS RECAP: What’s up with the Weird Market Reaction to FOMC?

      

Comments

About Mortgage News Daily

Mortgage News Daily

Check Also

How To Treat Your VA

At my appraisal company, Appraisal Precision, we pride ourselves on completing our assignments timely and …