Confused about 'forward guidance' vs. actual rate hikes

asked by u/dina_alsayed · 17d · 1 answers

I'm still trying to grasp how much to weigh FOMC 'forward guidance' statements. It seems like the market often reacts strongly to the language, but then the actual hikes might be different. How do you all reconcile that in your analysis for $USD movements?

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u/daniel.smith· 3 pts· 16d
It's like the Fed is playing a very elaborate game of 'show and tell,' but they're not always showing what they actually intend to tell. I tend to watch the bond market's reaction to the guidance, as that usually gives a more grounded view than the immediate equities bounce.

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