Pre-FOMC: A Different Type of Taper
Following last week’s “hotter” than expected CPI release, the sole focus for the money and bond markets was to, yet again, dial back their Fed rate cut expectations. Ahead of the May FOMC meeting, this week on the Basis Points podcast, Kevin Flanagan dives into an aspect of Fed policy decision-making that has been flying under the radar: the balance sheet. Basis point: 1/100th of 1 percent. Consumer Price Index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking…
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