In the aftermath of the release of the Fed Minutes and the chaos that ensued immediately afterward in major markets, today King World News spoke with the man the Fed called on to execute QE1 and who also set up the Fed’s massive trading room, former Fed member and former Managing Director at Morgan Stanley, Andrew Huszar. What he had to say will surprise KWN readers around the world. Below is what Huszard had to say in this fascinating interview.
Eric King: “Andrew,
yesterday we had the release of the Federal Open Market Committee
Minutes and instantly all hell broke loose in major markets.”
Huszar: “It’s
interesting because if I go back to when I was at the Fed in 2010 and
2011 — and people forget this — but you had the markets anticipating
rate rises in the next few months. You had certain Fed presidents,
particularly the more hawkish ones, encouraging the drumbeat of rate
hikes. As we’ve seen repeatedly over the last five years, the market
has overshot expectations about how quickly the Fed is going to pull the
punchbowl back. So once again, after a pretty bearish day yesterday,
the market is pleasantly surprised that the Fed appears to be far more
dovish than anticipated…..
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