Fed’s Failure To Communicate, Markets’ Failure To Count

Not to beat a dead horse but the following example just reinforces our last post.

What the market perceives,

Investors who are hoping the Federal Reserve signals a change or adjustment in its balance sheet policy on Wednesday are likely to be disappointed, economists said.

To reduce its $4 trillion holdings of Treasurys and mortgage-backed securities amassed during the financial crisis, the Fed has been letting $50 billion in maturing securities “roll off” its balance sheet each month.  – MarketWatch

Versus reality,

fed_11

 

Time to move on.

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