The Fed said it will inject another $200B into the economy, lending money against mortgage-backed debt for 28 days, vs. the current overnight. The move sparked a 3.6% gain in the Dow, its biggest rally in five years. The Fed hopes the additional liquidity will help Wall Street bankers cushion their books against loan defaults and depressed debt securities.
The odds of a 75 BP cut to the Fed's current 3% target on March 18 fell to 64%; it had previously been fully priced-in.
Most importantly, the Market is actually showing respect for this latest move by the Fed. A huge rally yesterday and what is shaping up to be a follow-up rally today...
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment