Fed Chair Janet Yellen dashed expectations by staying mum at Jackson Hole.
This is a Fed that continues to be mystified why it is misunderstood by market participants and observers.
The Fed opts to stay silent on September but options have a price – which the Fed has yet to pay.
Global strategic advisor Richard Clarida discusses both the base case for PIMCO’s three- to five-year global macroeconomic outlook and the risks looming over the horizon.
The minutes dutifully convey why the FOMC did not hike in June, but what insights do they provide about the conditions that will need to be met before the committee can agree on the next hike?
While the June statement did not rule out July, it did not signal that a hike at the next meeting is likely.
Today’s U.S. employment report was disappointing on many levels and almost certainly keeps the Federal Reserve on hold in June. But it is important not to overreact to one report – even a surprisingly weak one.
The minutes from the April FOMC (Federal Open Market Committee) meeting left little doubt that market participants had been misreading the Fed’s inclination to hike rates this year.
Fed Chair Janet Yellen – who appears determined to maximize optionality – achieves just that with today’s statement.
Coming into today’s Fed meeting, there was little mystery about what it would do – nothing – but a lot of interest and a wide range of opinion about how it would communicate a decision to keep rates on hold.