The View from 5th Avenue

The View at Two – 7 October 2020

What’s the Word, Jerome?... We delayed this View by a few minutes to accommodate the 2pm release of FOMC minutes, but the transcript delivered few surprises, and indices remain at the highs of the day along with Treasury yields. As expected, FOMC members agreed that economic activity has picked up (back to about 3/4ths of pre-pandemic levels) but concern remains that fiscal support is needed. Interesting to note that some members didn’t see the need for enhanced forward guidance, and that the guidance is not an “unconditional commitment”… that suggests rates don’t necessarily have to stay near zero for as long as currently forecasted. Still, we’re seeing little reaction from the market.

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