Source: Federal Reserve The Federal Reserve on Wednesday hiked its key policy rate by half a percentage point, with Federal Chairman Jerome Powell hinting at more hikes moving forward. QQQ is down 3.11%, while SPY is down 2.13%. The latest increase will bring the federal funds rate between 0.75% to 1% and the current market pricing rate between 2.75% to 3%.Powell said … [Read more...] about Fed Raises Rates, Hints at More Tightening
Fed
Fed Governor Brainard Says ‘More Rapid’ Balance Sheet Reduction to Start in May
Source: Bloomberg The Federal Reserve is expected to cut down its balance sheet as soon as the next month, according to Governor Lael Brainard. QQQ is down 1.63%. Brainard, in a prepared speech, said the Federal Open Market Committee will start to shrink its balance sheet “at a rapid pace” as soon as its meeting next month.She said the balance sheet is expected to be … [Read more...] about Fed Governor Brainard Says ‘More Rapid’ Balance Sheet Reduction to Start in May
Why the Pandemic Showed Fed Matters in Crisis-hit Markets
Fed’s action during the early days of the coronavirus pandemic stemmed a rout in markets and kept financial costs low, according to Reuters. Fed restored trust in fragile moments, proving its critics wrong of role in preventing financial crisis. When the coronavirus crisis intensified in March, Fed’s initial moves propped up trading in Treasury bonds, short-term … [Read more...] about Why the Pandemic Showed Fed Matters in Crisis-hit Markets
