MBS RECAP: New Fed Vice Chair Helps Rates and Stocks
Posted To: MBS CommentaryWe haven’t heard much out of new Fed Vice Chair Richard Clarida since he accepted the position, but what we heard today was good. Well, at least the bond market reaction was good. His comments ended up setting the tone for the day. So what did he say? Nothing too complicated… Whereas Fed Pres Bostic was talking about a “neutral rate” of 2.5-3.5 yesterday, Clarida said we’re close to a neutral range NOW. That certainly seemed to be the biggest deal among his comments, but it was perhaps just as significant that he noted evidence of global economic slowing. Stocks and bonds both rallied from there on out. The fact that the shorter end of the yield curve led the charge was especially telling (that’s where we’d expect to see a bond market rally driven by shifts in Fed…(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.