evilanne wrote:Seems like the 2:00 FOMC Minutes led to stock decline across the board, including EFA, as Fed plans on further winding down QE by reducing their bond holdings.
"The first details of winding down the Fed's $4.5 trillion balance sheet are out with the minutes from the March 14 & 15 FOMC meeting. Most of the policy makers see a change in their reinvestment program sometime this year, one that will include the phasing out of both the Fed's holdings of Treasuries and mortgage-backed securities." http://mam.econoday.com/byshoweventfull ... ek.asp#top
Yeah, I started out the day with some glee as I saw the jobs report only to be let down by the FOMC meeting. In particular, I'm wondering about the long-term effects on the G Fund. I know that if the Fed sells their bonds, then interest rates increase (in order to get new buyers). At the same time, there is a major push for an infrastructure package. Now its cheap borrowing for the government, but once those interest rates increase we'll be paying much more (out of our taxes). Inflation should increase causing the G Fund yield to also increase, but then these past few years have defied logic in so many ways. Who knows?
As virtually every other person says here "don't overthink it."
Best,
Me