The Fed telegraphed in November and December that rates would be going up. The December inflation number of 7% (released in January) hammered home the reality that inflation isn’t going down to historical levels of around 2% anytime soon. Despite Chairman Powell’s best efforts to be transparent and give markets time to adjust to the increases, the Fed meeting mid-month resulted in more volatility.
Markets are forward-looking and price in future economic conditions. Will we experience this level of volatility going forward as the Fed attempts to balance stated goals of full employment, reducing financial inequality, and corralling spiking inflation?
The Fed apparently thinks they have a plan for a smooth landing.
The Fed met, and Chairman Powell held a press conference.
Chairman Powell’s remarks were most notable for what they left out. Powell said that the Fed is undecided on the pace of subsequent increases... ...
If you’re a financial advisor looking to grow your firm, we have you covered. Whether you’re a marketing expert or need the guidance and content to build your program, we’re here with you every step of the way.
Already a Member? Sign-In here