Wednesday, March 17, 2021

market verdict before FOMC

 teenies 1.676 (at open); 1.689 (high pre-FOMC)

no rate change; as expected 

post announcement: 1.635 .. but what showed the biggest move is dollar ... which had a big drop; & of course, gold went opposite.

inflation is expected to rise 2.4% this year and Feds plan to deem it as transient - i.e. no action.

80B treas & 40B MBS monthly purchase; so the liquidity remains.

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you don't need to be a PhD in economics ...

to solve an economic problem ... & there are 100s of PhD working at Federal Reserves forecasting an inflation in future due to tariffs ....