Daily Alert – Thursday 7th April 2022: Fed to move “expeditiously”

Mark NugentApril 2022, Daily Alert

Daily Alert – Thursday 7th April 2022: Fed to move “expeditiously”

Good morning.

Yesterday saw the much-awaited FOMC Meeting Minutes from the US Federal Reserve. The key points are that “many” voters (on the FOMC Committee) see one or more 50bp hikes as appropriate; they plan to “move the stance of monetary policy toward a neutral posture expeditiously.” A neutral stance is one that is deemed neither to promote nor suppress the economy and is considered to be 2.4 percent. The current rate is 0.25 to 0.50 percent. In terms of the balance sheet, there is a plan to prune it by $1.1 trillion pa, with approval expected at the May meeting.

Equities continued down yesterday in what some called a continuation of the “Brainard” effect, spilling over from Tuesday. The US 10-Year bond yield continued to climb on the hawkishness all around.

I placed no trades as I saw no high probability opportunity.

There is little on the calendar for the remainder of the week.

We will be back on Monday.

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