Be ready for a very Agressive Federal reserve..!
Updated
The real economy slows down according to Fed chair Jerome Powell since November 2021..!
Inflation is at a record high in the past 4 decades and could become double-digit (above 10%) in 2022 if the Federal Reserve keeps pumping liquidity in the system..!
If you review my articles about inflation since May 2021, you will see how this pattern was detected before it happens..!
Current situation: we have passed the gate of Hyperinflation thanks to the passive Fed, Now we should wait and see how aggressive Fed will act???
When the Federal Open Market Committee (FOMC) changes the interest rate, it impacts both the economy and the stock markets because borrowing becomes either more or less expensive for individuals and businesses.
Any impact on the stock market to a change in the interest rate changes is generally experienced immediately, while, for the rest of the economy, it may take about a year to see any widespread impact.
Higher interest rates tend to negatively affect earnings and stock prices (with the exception of the financial sector).
For further information read the below article:
https://www.investopedia.com/investing/how-interest-rates-affect-stock-market/
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
Inflation is at a record high in the past 4 decades and could become double-digit (above 10%) in 2022 if the Federal Reserve keeps pumping liquidity in the system..!
If you review my articles about inflation since May 2021, you will see how this pattern was detected before it happens..!
Current situation: we have passed the gate of Hyperinflation thanks to the passive Fed, Now we should wait and see how aggressive Fed will act???
When the Federal Open Market Committee (FOMC) changes the interest rate, it impacts both the economy and the stock markets because borrowing becomes either more or less expensive for individuals and businesses.
Any impact on the stock market to a change in the interest rate changes is generally experienced immediately, while, for the rest of the economy, it may take about a year to see any widespread impact.
Higher interest rates tend to negatively affect earnings and stock prices (with the exception of the financial sector).
For further information read the below article:
https://www.investopedia.com/investing/how-interest-rates-affect-stock-market/
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
Note
7.5 YOY and 6% core inflation, Jerome will pNote
Neither Peaked nor Slowed..!Note
Bullard calling for 100bp rate hikes by July 1 now is called slamming the foot on the breaks, exactly what @elerianm
had been warning about all last year.
Fasten your seat belt
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