May FOMC Day One

The fateful May FOMC meeting begins today with the usual behind-closed-doors chortling and back-slapping. There will be nothing new until tomorrow’s Fedlines and Powell presser but that won’t stop the endless speculation regarding the details.

Personally, I think there’s very little chance of the 75 basis point fed funds rate hike that was posited by Goon Bullard two weeks ago. Not with Q1 GDP already in the negative. The real show will be in the alleged “QT” program. Will The Fed claim that they will soon begin unloading some treasuries and MBS into a bond market that is already…

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