To gain an edge, this is what you need to know now.
Fed Pivots
Please click here for a chart of Nasdaq 100 ETF (QQQ).
Note the following:
- The Fed has pivoted to control inflation. Here are the key points:
- The Fed has doubled the size of taper as expected.
- At the new rate of taper, money printing should stop by mid-March.
- The Fed is signaling three rate rises in 2022.
- The most important data point going forward is the terminal rate. The Fed is silent on this subject. Due to the importance of the terminal rate, we will start addressing it in Morning Capsules as appropriate.