Note to Powell: Four Big Questions From Bond Markets This Week
- Investors look for guide to path of interest-rate, QE policy
- Divisions over possibility of tweak to interest on reserves
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Bond investors know not to expect more dramatic action from Wednesday’s Federal Reserve policy decision -- the past six weeks of emergency relief measures worth trillions of dollars are still coursing through markets.
But this meeting, Morgan Stanley strategists have warned, is “more important than you think.” There are several points on which traders will be seeking clarity, either from the Fed’s statement or from Chairman Jerome Powell at his news conference.