Wednesday, December 16, 2020

contradictory Fed ...

per FOMC minutes this afternoon, Feds decided to keep the rates unchanged which was expected, but they also expect a higher growth rate for 2021 as 4.2% .. a contradiction in itself ... but market always does the right thing; so, teenies jumped from .91 to .95, but returned back to .92 after the Q&A session.

yes, we all are looking forward for a spring opening of the economy, but with so much money supply & stimulus floating around, it could easily turn into untamed inflation, followed by Fed chasing with raising rates, and market dropping big time, as money supply is reduced and S&P not meeting earnings expectations .. but that's lot many predictions in one sentence .. so take it with grain of salt.

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