Interest Rate Hike Could Come in 2022, Fed Dot Plot Shows
The Fed didn't touch interest rates or its bond purchases at the September meeting, but Powell hinted that a tapering announcement could be coming in November. "So long as the recovery remains on track a gradual tapering process that concludes around the middle of next year is likely to be appropriate," said Powell. He reiterated that tapering does not mean rates are going anywhere right away, but the Fed's latest dot plot did show that half of policymakers now expect a hike in 2022.
Global News: Companies Mandating Vaccines, New Climate Concerns & IMF's Record Payment
- More companies require employees to get vaccines - The IMF tries to boost global liquidity - The IPCC warns of climate risks - Uber's financing partner gives Africa a cash infusion - The Chinese government announces a new five-year plan to strengthen control over key sectors of the economy.
Fed Hold Rates Near Zero as Economy Makes Progress
The Fed is holding rates steady near zero and maintaining its asset purchase program, promising to provide advance notice before making any changes. Chair Jay Powell applauded strengthening employment & economic activity, but he didn't give a number to target for maximum employment or offer specifics about tapering timing or what exactly constitutes "substantial further progress."
Jobs Data Disappoints
The unemployment rate just notched up to 6.1% and the U.S. only added 266,000 jobs in April, according to the Bureau of Labor Statistics. The consensus estimate was that the US would add 1 million jobs in April, so the report was a huge miss for economists.
Fed Holds Steady at March Meeting
As expected, the FOMC is leaving rates unchanged and keeping up its asset purchase program of $120 billion each month. When asked if the Fed is thinking about thinking about tapering, Chair Powell said the Fed will be looking for substantial further progress before tapering. During the press conference, Powell acknowledged growth, but cautioned that "the economy is a long way from our goals" and the recovery is “uneven and far from complete."
Biden's Cap Gains Tax Hike for Millionaires Spooks Markets
President Joe Biden just proposed doubling the capital gains tax rate, which currently stands at 20%, for some of America's top earners. According to Bloomberg, federal tax rates could be as high as 43.4% for people earning more than a million dollars each year. As soon as reports of this tax hike came in, we saw stocks move sharply lower. Bitcoin also fell below $50,000 following the news.
Kevin O'Leary on His Dual-Class Crypto Predictions & 28 SPAC Investments
Kevin O'Leary reveals why he invested in 28 SPACs and why he thinks "blank check companies" are here to stay. He also predicts that we will see two categories of cryptocurrency in the future: "Clean Green Coin" and "Blood Coin," adding that he would be willing to pay a premium for the better option. His comments come as institutional investors raise concerns about the sustainability and ethics of coin mining.
NYSE Trader Optimistic about Earnings
Peter Tuchman with the NYSE discusses being back at the exchange, what the economic indicators mean for markets, his expectations for earnings, and the next generation of traders.
Q1: Stocks & Bitcoin Climb as NFTs, GameStop & SPACs Make Headlines
Despite the Dow gaining almost 8% and the strong performance of stocks so far in 2021, the most memorable moments of the first quarter might be the surge of GameStop, SPACs, Bitcoin, and NFTs. As we move into the second quarter, inflation will be a top concern and investors can likely expect more stimulus.
SPAC Issuance Spikes & SEC Issues Warning to Investors about Celebrity Endorsements
With parabolic issuance and celebrity endorsements from Shaq to Jay-Z, SPACs are one of the hottest topics in finance. According to Dealogic, SPACs have raised almost $85 billion so far this year, which comes out to 72% of all IPOs. Still, some advisors and the SEC are offering their own words of caution.
Quadruple Witching on Wall Street Sends Trading Volumes Higher
It's the first witching day of the year on Wall Street, adding more volatility to an already volatile week! Stocks climbed Wednesday following the Fed's dovish guidance only to reverse course Thursday with a selloff. Friday started off with a spike in trading volumes thanks to the simultaneous expiration of options and futures known as "quadruple witching."
Fed Holds Rates Near Zero
Stocks spiked after dovish guidance and the Fed's decision to maintain aggressive monetary policy for as long as it takes. Despite forecasting 4.5% unemployment by the end of the year upping its GDP forecast to a robust 6.5%, the Central Bank is holding interest rates near zero and maintaining its 120 billion monthly bond buying program.