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.

This entry was posted in Fed, Monetary Policy, Uncategorized and tagged , , . Bookmark the permalink.

1 Response to Fed’s Failure To Communicate, Markets’ Failure To Count

  1. That’s only $600 billion per year, Sparky. I pissed that much off every time I have one of those large cans of Fosters.

    *Andrew J. Szabo*,*CFA* Managing Director Greenwich Financial Management Inc. Phone: 917-796-8500 szabo@GreenwichFinancial.com Website: http://www.GreenwichFinancial.com LinkedIn: http://www.linkedin.com/in/andyszabo/ Twitter: https://twitter.com/GFMgmt Skype: GreenwichFinancial

    On Tue, Jan 29, 2019 at 4:51 PM Global Macro Monitor wrote:

    > macromon posted: “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 disappointe” >

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