Powell Rescues Market? Can The Rebound Last Longer?
The latest FOMC meeting announced: "Starting in April, the committee will slow the pace of tapering, lowering the monthly redemption cap for U.S. Treasuries from $25 billion to $5 billion." The market rebounded due to Powell's dovish stance. How long will this market rebound last? Does the slowdown in balance sheet reduction help improve market liquidity?