Punstoppable
A list of puns related to "Dovish"
Guten Morgen zusammen zur Kaffeerunde, noch einmal am Sonntag,
momentan schlicht zu viel zu tun und die Katze ist jetzt auch kein richtiger Support..
Wichtig wird diese Woche das FOMC Meeting am Mittwoch sein, bis dahin vermute ich eher wenig Volumen - Volatil kann es natΓΌrlich immer noch sein!
Viele GrΓΌsse,
Khan
They see only one bubble. We saw a much higher inflation June print than many economists have ever anticipated. And the real yield on 10-year US Treasuries keeps tumbling further below zero. Just ignore the warning signs. We heard Jerome Powell reinforcing many dovish messages.
This week it wonβt be different. The Fed is determined to be patient and willing to label the inflation as a temporary phenomenon despite the remarkable spike in inflation. Powell reiterates there is not enough genuine inflation in the system. Itβs not real, just another used cars media speculation. There is no inflation! There is no spoon! But if you dig a little deeper you will see that there are persistent inflation pressures building in the system both on supply and demand sides. Stagflation
>Especially the supply side is struggling to keep up (supply delivery times within the manufacturing PMIs are pointing to some real disruption coming). But it is not only a supply issue. The demand surged back. The mismatch is now on both sides of supply and demand. And donβt forget the wage pressure. The job openings are at record levels, the labor market is setting up for a strong recovery, the unemployment rate keeps falling. But some folks prefer to stay home.
All what the Fed is asking for is patience. The Fed is not worried about the spike of inflation but rather about its persistence. Jackson Hole will be the start of the real tapering discussion. Then in December the Fed will announce the gradual tapering start in January next year. What happens after January nobody knows today. But the Fed hopes that by that time the inflation wonβt be persistent so that they could complete the tapering by the end of 2022 so that they could raise the rates.
https://preview.redd.it/6od1rplvyae71.png?width=2014&format=png&auto=webp&s=1e1d42b072b907d161ee55df463e769f1c98302c
One thing is for sure, the tapering will be the most aggressive and the fastest one.
Bolstered by the impact of fiscal and Covid-19 stimulus packages, the US Federal Reserve is expected to forecast an improving economic outlook with the labour market and inflation to rebound faster than anticipated in December.
However, traders will likely be disappointed if they are expecting sunnier projections to translate to changes in monetary policy when the US central bank's Federal Open Market Committee (FOMC) ends its two-day meeting on Wednesday.
Reaffirming its extremely dovish stance, the FOMC will hold its funds target range steady at 0%-0.25%, analysts forecast, while the QE monthly purchasing target should remain at βat leastβ USD 80bln in treasuries and USD 40bn in agency mortgage-backed securities.
Fed Chairman Jerome Powell is set to stress a change in plans for interest rates and bond purchases is premature while he wrestles with questions on tapering given the choppiness in bond yields.
While analysts expect the central bank keep rates at current levels through 2023, the recent wave of volatility in money markets has stoked speculation of a break from its holding pattern. The Fed may be forced into a technical adjustment, but virtually no one expects action at this weekβs meeting.
Full Link:https://www.livesquawk.com/report/special_fed-set-to-reaffirm-dovish-stance-with-powell-likely-to-urge-patience
Please note that this site uses cookies to personalise content and adverts, to provide social media features, and to analyse web traffic. Click here for more information.
