by winston » Sat Jan 29, 2022 7:41 am
Details of the Fed’s policy statement
by John Jagerson and Wade Hansen
The FOMC just released its statement, and here’s what it said:
1. It will likely start raising rates in March.
2. “With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate.”
3. It is not planning on more than four rate hikes in 2022, but it’s not taking the option off the table.
4. “In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.”
5. It will be accelerating its tapering… slightly.
6. “The Committee decided to continue to reduce the monthly pace of its net asset purchases, bringing them to an end in early March.”
7. It has no plans to start dramatically reducing its balance sheet.
8. “The Federal Reserve’s ongoing purchases and holdings of securities will continue to foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses.”
Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"