12/15/2021 –

Highlights from FED meeting today:

Unemployment rate is lowest in a decade
Inflation is no longer transitory
– High CPI index
– Fed to taper bond buying
Inflation moderately exceeding 2% target as being met and Fed would keep rates near zero until they were satisfied labor market conditions were consistent with maximum employment.

– Fed Officials now expect the unemployment rate to fall to 3.5% next year, below their long-run estimate of 4%. They now see core inflation ending this year at 4.4%, up from a projection of 3.7% in September, before falling to 2.7% at the end of 2022, versus a projection of 2.3% in September.

– After projecting three quarter-percentage-point rate rises next year, most officials penciled in at least three more rate increases in 2023 and two more in 2024. That would leave short-term interest rates slightly below what is known as the neutral level designed to neither spur nor slow growth.

– Market (S&P 500) rallied almost 1.63% andย ย QQQ tech heavy index rallied 2.28%

Now get ready for Santa Rally ๐Ÿ™‚

 

 

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