Posted To: MBS Commentary

Coronavirus is responsible for many "firsts." Apart from the obvious impact on daily life there are firsts for the economy and monetary policy as well. Since March, all of the significant policy changes from the Fed have been unscheduled and there have been zero significant policy changes on scheduled Fed announcement days. That's a record, and it raises a question about what we'll see today in light of the most recent unscheduled policy change at the end of August. The late August framework update is a bit different than the other emergency policy changes. It wasn't responsible for a drastic rate cut, a huge glut of bond buying, or a slew of emergency lending programs. Rather, it's more like the Fed's way of updating its playbook to implement what it has learned…(read more)

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Source: Mortgage News Daily