An open book An open book\images\insights\video\book-open-library-small.jpg July 19 2022 July 19 2022

An open book

Investors may anticipate Fed actions.

Published July 19 2022
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Video Transcript
Question: How has the Fed's increasing transparency benefitted investors?
R.J. Gallo: The Fed has shifted to an ultra transparent method of implementing monetary policy. The theory is that if you communicate with the market what you as a policymaker think is the appropriate path for monetary policy, then the markets can adapt and incorporate those expectations into market prices. That's the change for investors. You don't have to wait to see what the Fed does at each meeting. What you have to do is you have to understand what the Fed is telling you they plan on doing at their meetings.
Tags Fixed Income . Monetary Policy .

Views are as of the date above and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector.

Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.

Federated Investment Management Company