Stocks Hit Record, Bond Curve Steepens After Fed:
Markets Wrap
https://www.bloomberg.com/news/articles/2021-11-02/asian-stocks-set-for-mixed-start-as-fed-awaited-markets-wrap
Fed Sets a Date with Bond Vigilantes in Eight
Months
https://www.bloomberg.com/opinion/articles/2021-11-03/fed-decision-central-bank-sets-date-with-bond-vigilantes-in-8-months
HIGHLIGHTS FROM THE FOMC STATEMENT [NOV 3,
2021]:
https://www.federalreserve.gov/newsevents/pressreleases/monetary20211103a.htm
The Committee seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. With inflation having
run persistently below this longer-run goal, the Committee will aim to achieve
inflation moderately above 2 percent for some time so that inflation averages 2
percent over time and longer‑term inflation expectations remain well anchored
at 2 percent. The Committee expects to maintain an accommodative stance of monetary
policy until these outcomes are achieved. The Committee decided to keep the
target range for the federal funds rate at 0 to 1/4 percent and expects it will
be appropriate to maintain this target range until labor market conditions have
reached levels consistent with the Committee's assessments of maximum
employment and inflation has risen to 2 percent and is on track to moderately
exceed 2 percent for some time. In light of the substantial further progress
the economy has made toward the Committee's goals since last December, the
Committee decided to begin reducing the monthly pace of its net asset purchases
by $10 billion for Treasury securities and $5 billion for agency
mortgage-backed securities. Beginning later this month, the Committee will
increase its holdings of Treasury securities by at least $70 billion per month
and of agency mortgage‑backed securities by at least $35 billion per month.
Beginning in December, the Committee will increase its holdings of Treasury
securities by at least $60 billion per month and of agency mortgage-backed
securities by at least $30 billion per month. The Committee judges that similar
reductions in the pace of net asset purchases will likely be appropriate each
month, but it is prepared to adjust the pace of purchases if warranted by
changes in the economic outlook. The Federal Reserve's ongoing purchases and
holdings of securities will continue to foster smooth market functioning and
accommodative financial conditions, thereby supporting the flow of credit to
households and businesses.
