Jan 26, 2022 | Notes from the Desk
Four More Years. Biden nominates Jay Powell for a second term. · Jay Powell to serve a second term as chair of the Federal Reserve. · Lael Brainard, considered the competitor to the throne, assumes the role of vice-chair and is expected to be named vice-chair of...Jan 26, 2022 | Notes from the Desk
Canadian Inflation · Headline CPI came in as expected at 4.7%, while core inflation was 1.8% (a touch below the expectation of 1.9%) · With the Bank of Canada forecast of 4.8% for Q4, today’s numbers should do little to ease concerns over inflation nor should it stoke...Jan 26, 2022 | Notes from the Desk
Today’s FOMC was a relatively straightforward, as-expected affair. · The tapering of QE begins this month with a reduction of $15 bn per month ($10 bn in treasuries, $5 bn in mortgages) · At this pace, QE will be done in mid-June, which sets the stage for rate hikes...Jan 26, 2022 | Notes from the Desk
A quick note from our trading desk on today’s Bank of Canada meeting and press conference. · The BoC has officially ended QE and moved into the reinvestment phase, where they will simply reinvest maturing bonds. They expect to be in this reinvestment phase until...Jan 26, 2022 | Notes from the Desk
Federal Reserve Chairman Jay Powell has achieved an amazing outcome. His highly anticipated speech this morning was a masterpiece of optimism and calmness. · Tapering is expected later this year, with the exact timing dependent on the impact of delta. No panic in...Jan 26, 2022 | Notes from the Desk
The Federal Reserve really knows how to thread the needle, having dropped hints about tapering without freaking-out the markets. The As Expecteds. · No change to the overnight rate · Still hold that the recent bout of high inflation is transitory · Quantitative easing...
