The Fed's Next Move

In 1935, Cret designed the Seal of the Board of Governors of the Federal Reserve System. (Photo credit: Wikipedia)

The Schwab Cen­ter for Finan­cial Research presents Bond Insights, a bi-weekly analy­sis of the top sto­ries in today's bond mar­kets. In this issue we dis­cuss the upcom­ing FOMC meet­ing and what we're expect­ing, Moody’s down­grade of GE, the grow­ing divide in the munic­i­pal bond mar­ket, and strate­gies to help investors build a diver­si­fied bond portfolio.

The Fed's Next Move?

"If every­thing seems under con­trol, you're not going fast enough"—Mario Andretti.  If you're an investor, you might hope that pol­icy mak­ers in the devel­oped world would heed the wis­dom of Mario Andretti. After a burst of con­fi­dence in the first quar­ter, when things appeared to be run­ning smoothly, the mar­kets have re-focused on the chal­lenge of try­ing to reduce gov­ern­ment debt in the absence of eco­nomic growth. Here in the U.S., the next oppor­tu­nity bond investors will get to observe shifts in pol­icy will be the Fed­eral Reserve's next meet­ing on April 24-25th. The Fed may feel rea­son­ably con­fi­dent that they're "in con­trol," but it seems less likely to us that they'll feel we're going "fast enough."... Continue to read.

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