What Fed Policy Means for the Markets
About This Episode
As expected, on March 16, the Fed signaled its intention to hike the Fed Funds rate by 25bps. My guest today, Matt Dines, the CIO of Build Asset Management, sees three big takeaways from its report. First, the Fed’s guidance on the path of the policy rate telegraphed its commitment to addressing the rising price levels afflicting the economy. Second, the FOMC’s guidance on the Fed Funds rate joined other key and important rate curves in the global financial system in inversion – i.e., the level for longer-dated maturities lies below those that come before them. Third, the strong rally across financial assets after they digested the FOMC's report was an understanding that the "Fed Put" will be in play the next time trouble arises.
About Our Guest
Matt Dines is chief investment officer and co-founder of fixed income and options strategy at Build Asset Management.