Starting June 1, the Fed began reducing its balance sheet holdings of U.S. Treasuries by $30 billion a month for three months. Thereafter, it will double its reduction of U.S. Treasuries by $60 billion per month beginning in the fourth month. For its mortgage-backed securities, the first three months will see $17.5 billion roll off …
How Will the Federal Reserve’s Quantitative Tightening Impact Markets? Read More »
With the S&P down nearly 20 percent and the Nasdaq index down nearly 4,000 points since the beginning of 2022, one could say the indices are in a bear market. While we can’t predict the future, economic indicators can offer some insight into the likelihood of the market’s future performance. There are many ways to …
Have the Markets Bottomed or is it a Bear Market Rally? Read More »
The Bureau of Labor Statistic’s Consumer Price Index rose by 8.5 percent year-over-year ending March 2022, leading most economists to agree that inflation is going to be with us for a while. With inflation seeming not to abate, at least in the near term, how will different types of investments react to inflation that is …
How Will the Federal Reserve React to Increasing Inflation? Read More »
There’s much uncertainty surrounding if, how and when the Federal Reserve will raise its rates, end its bond and mortgage-backed security purchases, and wind down its balance sheet. For the March 16 Fed Meeting, the CME FedWatch Tool has a 47.9 percent probability of a 25 to 50 basis point increase, and a 52.1 percent …
Strothman Wealth Care U.S. Markets Reports of a new COVID-19 variant in late November roiled markets as a wave of selling erased the month’s earlier gains. The Dow Jones Industrial Average took the hardest hit, dropping 3.73 percent. The Standard & Poor’s 500 Index fell 0.83 percent while the Nasdaq Composite managed a small gain …
As the Board of Governors of the Federal Reserve System points out, Jerome Powell was appointed to a four-year term on Feb. 5, 2018. With the Fed Chair’s term expiring in February 2022, there has been much uncertainty as to whether he would be reappointed or replaced. Powell’s first term as the Chair of the …
Fed Chair Nomination in 2022: How Will it Impact Markets? Read More »
According to the Sept. 8, 2021, release of the Federal Reserve’s Beige Book, the U.S. economy is facing many headwinds. The report found that restaurants and the travel sector saw a drop in activity. Home and auto sales were low because of fewer available houses on the market and a challenging supply of computer chips …
Does the Fed’s Beige Book Forecast Negative Market Headwinds? Read More »
The June 16 Federal Open Market Committee (FOMC) meeting Q&A session with Chairman Jay Powell and recent comments from The Fed have signaled two potential inflation rate hikes in 2023. Two days later, James Bullard, president of the Federal Reserve Bank of St. Louis, signaled there could be a rate hike as soon as 2022. …
How Will Uncertain Inflation Outlook Impact Stock Market? Read More »
With the economy reopening and more Americans receiving COVID-19 vaccinations, the economy is expected to be operating on all cylinders. However, some economists and market analysts are afraid The Federal Reserve may create a “taper tantrum” if and when it starts to reduce its purchase of U.S. Treasury debt. The Fed’s current track of purchasing …
Will The Federal Reserve Create a Taper Tantrum in 2021? Read More »
