The first argument is not in my view very compelling, because the Fed’s inflation-phobia did not suddenly appear at the September 2008 FOMC meeting, or even at the June meeting, though, to be sure, its pathological nature at those meetings does have a certain breathtaking quality; it had...
We see the FOMC keeping rates on hold for this week’s meeting, while maintaining its easing stance for 2024 with three rate cuts. The surprises could come in the discussion of winding down its QT program, which we expect to occur by mid-year, or any discussions or changes in the long...
Fortunately, if one likes roller coasters, the journey isn’t over yet as the calendar shifts to the MarchFOMCpolicy decision this week. The Federal Open Market Committee (FOMC) meets eight times annually. The Committee releases a statement following each meeting with its intended policy ...
Gomez Cram and Grotteria (2022) show that for the days in which the FOMC has a scheduled meeting, for a wide range of financial assets, there is a strong positive correlation between price changes in the narrow window around the statement release and those during the subsequent press ...
Powell’s trading directlyviolates the Fed’s written policywhich prohibits trading “during the period that begins at the start of the second Saturday (midnight) Eastern Time before the beginning of each FOMC meeting and ends at midnight Eastern Time on the...