Statement Regarding Monetary Policy Implementation and Balance Sheet Normalization | Forex Factory

  • Statement Regarding Monetary Policy Implementation and Balance Sheet Normalization

    From federalreserve.gov

    After extensive deliberations and thorough review of experience to date, the Committee judges that it is appropriate at this time to provide additional information regarding its plans to implement monetary policy over the longer run. Additionally, the Committee is revising its earlier guidance regarding the conditions under which it could adjust the details of its balance sheet normalization program. Accordingly, all participants agreed to the following: The Committee intends to continue to implement monetary policy in a regime in which an ample supply of reserves ensures that control over the level of the federal ... (full story)

Comment Options
COGSx86
Jan 30, 2019 1:16pm
Permalink
In other words, if 3 month t-bills see an increase in supply (3 month rates go up) we will increase rates accordingly.

Nothings changed,
Reply
COGSx86
Jan 30, 2019 4:33pm — Edited
Permalink
Quoting foto
Re-instituting forward guidance for starters, other then not having lowered interest rates Fed went full Dove here and reversed any hint of normalization. This is a move that is worthy of Janet Yellen.

It has nothing to do with that Yellen, 3 month treasuries have flat lined, the FED has no reason to increase rates.


As China and the Japan continue to have solid relations with the US, they (Japan and China) will continue to buy US debt, keeping rates low.

Especially with the slow down in China since he tariffs took place, china slowed down, and they dont like that.

Motto of the story, rates will stay low
Reply
foto
Jan 30, 2019 1:39pm
Permalink
Re-instituting forward guidance for starters, other then not having lowered interest rates Fed went full Dove here and reversed any hint of normalization.
This is a move that is worthy of Janet Yellen.
Reply

  • Related Stories

There are no posts to display for these settings.
  • Story Stats