Quote · Bloomberg Intelligence
Accenture Forecast Sends Stock Tumbling a Record 20%
Where this was said
Fed Communication Then and Now: The Fax Machine Era
At 20:20 · chapter starts 20:00
Ira Jersey pushes back on Warsh's desire for 'pure market reactions,' arguing that markets have always anticipated the Fed — even when traders received the H.4.1 balance sheet by fax. [1] — Ira Jersey "In 1994, traders received the Fed's balance sheet via fax and had to guess policy direction from data. Today's wall of Fed speak makes that…" 19:35
The spread between the 2-year and 10-year Treasury narrowed to just 28 basis points, signaling the market is pricing in Fed hawkishness.
The 2-year Treasury yield jumped 14–15 basis points after the FOMC meeting while the 10-year barely moved. The spread has compressed to just 28 basis points — a far cry from recent levels — reflecting market conviction that the Fed is on hold or hiking.
