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Bond traders clamoring for answers bet the Fed isn’t done yet

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Bloomberg/Liz McCormick/8-23-2020

photo of flag Federal Reserve Board of Governors“For BMO’s [Ian] Lyngen, there’s scope for lower yields in the wake of the event, as it may make clear that Fed policy will remain accommodative for years to come. ‘The notion of a framework shift would be dovish, locking in the low-rate environment,’ he said.”

USAGOLD note:  The virtual Fed Meeting (in lieu of the annual Jackson hole gathering) will likely be this week’s highlight event … If Lyngen is correct, it  could light a fire under gold.