Basically there’s two main catalysts for the market to watch:
1. SLR EXEMPTION - if the Fed would extend the SLR and help the bank, surely it drives themarket. However, would you think the Fed will be nice to bank if bank is currently sitting on piles of cash which in turns bring a lot of profits? During the Q&A discussion, likely Powell would say “Oh we haven’t determined that yet”,and let it goes expired on end of March.
2. The SCP and Dot Plot- If the result for GDP in 2021 and 2022 comes out higher, unemployment rates becomes lower than Dec SCP, Fed will think wow market is doing well, while market will think oh Fed’s raising rates or tapering the bondpurchases. Market doesnt like that. Lastly, if the Dot Plot shows more people (5 in Dec) think we should raise rate in 2023... you may expect market get nervous!
Easy Money, the Dot Plot, and the Fed’s Dilemma: An Investor Guide to a Key Meeting
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- Suenwins·2021-03-18Powell remain dovish stance. But well, sounds like they are going to extend the SLR or else he wouldnt be mentioning there’s decision in next few days [无语] Lets wait for it!LikeReport
- Tomji·2021-03-18Thank you for explaining. I was quite lost.LikeReport