Menu

A Massive Change Likely Coming To The Fed And Markets May Not Like It
📰
0

A Massive Change Likely Coming To The Fed And Markets May Not Like It

Seeking Alpha·Mott Capital Management·about 1 month ago
#kF2CxssM
Reading 0:00
15s threshold

Home Market Outlook Today's Market Summary Major Fed changes loom as Kevin Warsh may replace Jay Powell, potentially ending forward guidance and the quarterly dot plot. Warsh favors a smaller Fed balance sheet, viewing quantitative easing as fiscal policy in disguise and preferring interest rate policy for broader economic impact. Adoption of the trimmed-mean PCE as the inflation gauge could justify earlier rate cuts, with implications for yield curves and market volatility. Market constraints, especially funding market stability, will likely limit how aggressively Warsh can shrink the balance sheet or alter policy tools. Looking for more investing ideas like this one? Get them exclusively at Reading The Markets.…

Continue reading — create a free account

Join HashtagPLUS to read full articles, follow hashtags, vote, and join the conversation.

Read More