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The Fed Has Spoken. Is Anyone Listening?
Manage episode 431839173 series 2084625
On today’s show we’re dissecting the latest Fed rate announcement. While the power of the Fed is often overstated, they do still influence market sentiment in ways that are difficult to fully dissect.
Chair Powell said in his opening remarks that the Fed was making excellent progress against their dual mandate of maximizing employment and maintaining price stability. In meetings over the past two years, the Fed Chairman has emphasized inflation to the point of sounding like a broken record.
But in some sense, none of that matters. After all, the FOMC sets one interest rate. They set the Federal Funds rate which is the rate the Fed charges its member banks at the discount window. It’s also the rate closely associated with the shortest term T bills.
The bond market determines the yield of the paper issued by the US government, and every other publicly traded bonds whether it’s British Gilts, EBC, Bank of Canada, Swiss Central Bank and so on.
In the minutes and hours following the Fed announcement, we saw bond yields drop significantly. On today's show we are talking about who wields the power when it comes to setting interest rates.
-------------
**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)
2479 επεισόδια
Manage episode 431839173 series 2084625
On today’s show we’re dissecting the latest Fed rate announcement. While the power of the Fed is often overstated, they do still influence market sentiment in ways that are difficult to fully dissect.
Chair Powell said in his opening remarks that the Fed was making excellent progress against their dual mandate of maximizing employment and maintaining price stability. In meetings over the past two years, the Fed Chairman has emphasized inflation to the point of sounding like a broken record.
But in some sense, none of that matters. After all, the FOMC sets one interest rate. They set the Federal Funds rate which is the rate the Fed charges its member banks at the discount window. It’s also the rate closely associated with the shortest term T bills.
The bond market determines the yield of the paper issued by the US government, and every other publicly traded bonds whether it’s British Gilts, EBC, Bank of Canada, Swiss Central Bank and so on.
In the minutes and hours following the Fed announcement, we saw bond yields drop significantly. On today's show we are talking about who wields the power when it comes to setting interest rates.
-------------
**Real Estate Espresso Podcast:**
Spotify: [The Real Estate Espresso Podcast](https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1)
iTunes: [The Real Estate Espresso Podcast](https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613)
Website: [www.victorjm.com](http://www.victorjm.com)
LinkedIn: [Victor Menasce](http://www.linkedin.com/in/vmenasce)
YouTube: [The Real Estate Espresso Podcast](http://www.youtube.com/@victorjmenasce6734)
Facebook: [www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)
Email: [podcast@victorjm.com](mailto:podcast@victorjm.com)
**Y Street Capital:**
Website: [www.ystreetcapital.com](http://www.ystreetcapital.com)
Facebook: [www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)
Instagram: [@ystreetcapital](http://www.instagram.com/ystreetcapital)
2479 επεισόδια
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