Balance Sheet Discussion May Mean Fewer 2018 Rate Hikes

The video discusses the impact of Fed President Bill Dudley's comments on the market's expectations for Fed tightening in 2018. It highlights the influence of FOMC minutes on transparency and compares the current situation to the 2014 tapering process. The discussion emphasizes the need for predictability and guidance in balance sheet policy, with expectations for a framework by the June FOMC meeting. Upcoming events like Chair Yellen's press conference and the Jackson Hole Conference are seen as opportunities to clarify market perceptions.

What was the main reason for the collapse in Fed tightening pricing for 2018?

What expectations does the speaker have regarding the transparency of the Fed's actions compared to previous interest rate normalization?

How does the speaker compare the current balance sheet policy to the tapering process in 2014?

What are the potential implications of the Fed's balance sheet policy on the broader mortgage outlook?

What key events does the speaker mention that could clarify the Fed's policy details?