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Fed more reassuring than market expectations: Arvind Sanger

Sumary of Fed more reassuring than market expectations: Arvind Sanger:

  • What is your outlook with respect to what the Fed Chair Jerome Powell reiterated about that inflation target as well as the very dovish stance?..
  • They are acknowledging that inflation might overshoot near term but they are not concerned about it and they are not going to react to it because they believe that this will be temporary as people start travelling and activity resumes post Covid vaccinations…
  • A lot of those things give people confidence that there will be no imminent rise in rates and that they are going to be very patient about it…
  • While the equity market seems to have reacted quite positively, the bond yields continue to hold out quite firm and unabated?Both the equity and the bond markets are getting used to the fact that what Fed is saying is not about keeping bond yields extremely low but about being patient about raising rates….

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