Fed's Last Christmas Before Biden Is All About WAM
Traders are focusing on the possibility that the central bank could set a weighted average maturity target for its bond-buying.
The Fed's version isn't quite as sexy as the 1980s vintage.
Photographer: Hulton Archive/Archive Photos/Getty Images
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Wednesday will bring 2020’s last financial policy set piece, as the Federal Open Market Committee meets to set monetary policy, and then the Federal Reserve’s chairman, Jerome Powell, faces the press to guide us. Despite growing medical optimism, he is under much pressure for action, and almost all of that action is likely to be painfully technical. Gone are the days when the Fed had effectively one monetary policy tool, its target interest rate. So, unfortunately, Powell is likely to take us all for one last trip into the thickets of monetary policy.