New York CNN —Wednesday’s Federal Reserve policy decision will likely be pretty boring for investors — officials are widely expected to keep interest rates the same, just as they have since July 2023.
They think that the Fed may curtail its quantitative tightening (QT) program — that’s the selling off of its assets to decrease money supply and increase interest rates — by as much as half.
Those purchases ended up pushing down interest rates in certain parts of the economy, like housing and auto sales.
That led to a “repo crisis”, where the interest rates for overnight loans between banks spiked unusually high.
That’s because a taper should send bond prices higher, and interest rates lower.
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