Comments On Today’s Fed Meeting – BlueBay

Comments On Today’s Fed Meeting – BlueBay
<a href="">skeeze</a> / Pixabay

The following are comments on today’s Fed meeting from David Riley, Chief Investment Strategist, BlueBay Asset Management (over $60 Billion USD in AUM).

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q4 2020 hedge fund letters, conferences and more

A Hotly Anticipated Fed Meeting

Today’s meeting of the Fed’s monetary policy committee – the FOMC – was hotly anticipated by investors against the backdrop of the recent surge higher in yields on Treasury bonds. The Fed and its Chair Jerome Powell faced a difficult balancing act – acknowledge the improving economic outlook without spooking financial markets fearful that the proverbial monetary punchbowl will be taken away. The initial market reaction suggests the Fed and Chair Powell succeeded with Treasury yields a bit lower along with the dollar and equity markets a touch higher.

This Hedge Fund Believes The New Real Estate Cycle Is “Well Underway”

REITChilton Capital's REIT Composite was up 6.1% last month, compared to the MSCI U.S. REIT Index, which gained 4.4%. Year to date, Chilton is up 6.3% net and 6.5% gross, compared to the index's 8.8% return. The firm met virtually with almost 40 real estate investment trusts last month and released the highlights of those Read More

The Fed made a big upgrade to its growth forecast for this year from 4.2% to 6½ percent catching up with the consensus of most private sector economists with the outlook boosted by the success of the vaccine rollout and additional fiscal support. More interestingly, the Fed also revised higher its projections for inflation which is now expected to be modestly above target at the end of this year. But the market took comfort from the Fed effectively re-affirming its commitment to its new average inflation targeting regime or AIT with a majority of FOMC members still not expecting a lift-off in policy rates from zero until 2024.

Fed Chair Powell made very clear that the Fed will maintain cheap money for as long as it takes to support a full economic recovery and will not start to tighten policy until they see the whites in the eyes of inflation and the jobs lost from the pandemic have been regained. The Fed is going to be patient before it even thinks about thinking about tapering its extraordinary support for the economy including its $120 billion per month of asset purchases, but it remains an open question whether the bond market will.

Previous article Tech Stocks To Outperform In 2021, Say Advisors
Next article The Growing Demand For Advanced Vehicle Batteries
Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

No posts to display