While many market and economic measures have recently moved back to pre-recession levels, we do not expect any major changes to central bank policy. Quite the opposite, we think that the lack of inflation and the mixed employment picture can keep the Fed liquidity spigots flowing for an extended period of time. The release of today’s Fed minutes solidified the view that the Fed remains as dovish as they have ever been. Six months does not, in fact, mean six months, and dots are less important than words, as the minutes revealed that there was little change in the committee’s accommodative reaction function. BNY Mellon Global Markets, LLC Weekly Market Commentary - April 9, 2014 April 09, 2014 20140409

BNY Mellon Global Markets, LLC Weekly Market Commentary - April 9, 2014

While many market and economic measures have recently moved back to pre-recession levels, we do not expect any major changes to central bank policy. Quite the opposite, we think that the lack of inflation and the mixed employment picture can keep the Fed liquidity spigots flowing for an extended period of time. The release of today’s Fed minutes solidified the view that the Fed remains as dovish as they have ever been. Six months does not, in fact, mean six months, and dots are less important than words, as the minutes revealed that there was little change in the committee’s accommodative reaction function.


Connect with Pershing