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Hail Zorp, the Surveyor! Or Zorp, The Federal Reserve Chair.
Yes, Janet Yellen and the Federal Reserve Open Market Committee (FOMC) will announce their plans on Wednesday February 1 at 2pm, EST.
Fed Chair Janet Yellen could announce a change in the Fed Funds Target Rate. She could announce and unwinding of The Fed’s Balance sheet.
Think of The Fed Funds Target Rate as the cost of money. And The Fed Funds Balance Sheet as one measure of the supply of money. M2 Money is another supply measure of money.
Concerning The Fed Funds Target Rate, investors are pricing in only a 13.5% probability of a rate hike and zero probability of a rate hike.
But will the FOMC announce plans to unwind the massive Fed Balance Sheet? And risk “Zorping” financial markets?
Join with Ron Swanson as plays “Symphony for the righteous destruction of
humanity financial markets in E minor.”