No surprise from the Fed last week but a strong jobs report may change things.

The FOMC met last week and did not surprise investors; they did exactly what was expected. They announced a tapering of their $120 billion a month of bond purchases beginning this month continuing through December of $15 billion. They will reduce their purchase of treasuries by $10B and mortgage-backed securities by $5B each month. The FOMC will adjust these amounts depending on economic conditions. They did not change their prior guidance with respect to changes in managed rates. The economic conditions they focus on are the labor market and inflation.

 

PROBANK AUSTIN ADVISOR - NOVEMBER 8, 2021