Posted To: MBS Commentary
In August, we witnessed a rapid acceleration in expectations for the Fed's long-awaited inflation framework shift. Although it seemed rather precipitous at the time, the framework review had been going on for more than a year with the initial round of news coverage way back in early 2019. When we first heard about it, it seemed like common sense . The Fed acknowledged it hadn't quite created the inflation it had hoped to create and perhaps the time had come to reevaluate its strategy in pursuing its dual mandate of price stability and full employment. Everything seemed to be in order there! Fed's Daly offered a sneak peek of the road ahead in June 2019 by saying the Fed would have to do a lot of good communication and credibly pursue its goals in order to adjust its inflation framework…(read more)
Source: Mortgage News Daily
