Transition in Monetary Policy?
Updated: Oct 28, 2021
As we move into the 4th quarter of 2021 we wanted to discuss a couple of developments within the US economy and how they might impact the stock market in the coming months and what that means for investors.
During the Federal Reserve meeting and the following press conference last week. Chairman Powell indicated that in November, the Fed may begin reducing the monthly asset purchases they have been doing since the early days of the Pandemic. The current pace of which is $120 Billion worth of Treasury Bonds and Mortgage Backed Securities. This process is called Tapering - where the Fed will start to buy less and less in the coming months. The broad concept is for the Fed to provide support to the economy when it's injured and for that to last until the economy can walk on its own two legs again. Tapering is the point in the healing process when the economy starts taking a couple of steps without crutches. Mike discusses this and much more in this video:
Authored by: Michael McCracken CFP®, ChFC and Jeffrey Gardner, Financial Advisor The information presented above has been prepared for informational purposes only and the commentary represent the opinions of the author and are subject to change at any time due to market or economic conditions or other factors.