On this week’s episode of Tape Talk, Quint and Daniel break down the recent headlines about the Federal Reserve’s outlook and interest rate forecasts for the year.
The FOMC very expectedly kept rates unchanged after their latest meeting. However, the more newsworthy bit out of the meeting was their lowered economic forecast for the year. Further, they sent a clearly dovish signal to maintain rates are their current level for the rest of the year.
How Interest Rates Work
Supply and demand is the law of nature on both Main Street and when it comes to interest rates. Quint breaks down how supply and demand are what the Fed uses when it tightens and eases policy to influence interest rates.
Quantitative Easing Primer
The Fed had recently been unwinding its largest balance sheet in history. Quint looks at what this means for the economy and why the new reality of a heavily invested Fed means that this balance sheet won’t be dramatically shrinking any time soon.