MBS Day Ahead: Here Comes the Fed (And a Satirical Prediction About What They’ll Say)

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Posted To: MBS Commentary

Today's key even is the 2pm ET Fed Announcement. There will be no hike and no adjustment to existing policies. That said, given a noticeably dovish shift in Fed speeches since the December meeting, more than a few investors are hoping to see some hint about a softening of those policies in the text of the announcement. I'm not sure how likely that is. In fact, it's UNLIKELY that we'll see any suggestion about changing the balance sheet normalization plans in the text of the announcement. The more likely venue for any balance sheet hints will be the press conference 30 minutes after the announcement (press conferences now happen after every meeting as opposed to every other meeting). None of this is to say that the announcement itself won't be changed. Indeed, that's…(read more)

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