Blog

Fed Ahead!

The Fed meeting is on Wednesday in one of the most anticipated announcements in many years. The elevated inflation levels are forcing the Fed’s hand in policy which means interest rates are going higher. However, the economy is not back to full power as supply chains and labor dislocations still exist as the last throes […]

Read More

The Tightening

The Fed made a soft pivot in their policy this week as they will continue to expand their balance sheet for a few more months and begin to raise interest rates 2-3x sometime early in 2022. However, they will likely change this policy again if inflation remains at these elevated levels so stay tuned on […]

Read More

Here Comes The Fed

The year is closing out and there are two more notable calendar events left in 2021. On Tuesday we get the Producer Price Index (PPI), a read on raw goods inflation, and on Wednesday the Fed is expected to announce a change to their bond buying program. In essence, the market is trading around the […]

Read More

Slay Ride

It has been a rocky two weeks as the S&P has dropped over 5% as Fed Chairman Powell admitted before Congress that inflation was not transitory and that policy would need to get more aggressive to combat higher prices. Weighing on the market is also the the omicron coronavirus variant that is triggering a fresh […]

Read More

Holiday Turbo-Taper

A little tidbit of information you may have missed on Friday was that the Vice-Chair of the Fed, Rich Clarida, made mention in an appearance that the Fed could accelerate their tapering schedule as inflation is running too damn high. This is a very notable comment as this is the number two person at the […]

Read More

Inflation Fighters Wanted!

Signs of inflation are rising unabated as evidenced by the the consumer and producer price indexes released this week (more below). Prices are rising 6-8% depending on which measure you analyze and most economists think this wave of higher prices will continue into the middle of next year which means this trend may get worse […]

Read More

Road to Recovery

We passed some significant hurdles this week. The Fed is reversing (lightly) their bond purchasing program by tapering their bond purchases by $15B monthly but will retain the size of their balance thereafter – not a big change which was well received by the capital markets. Also, the monthly payroll report for October showed Americans […]

Read More