Dichotomy (noun): a division into two especially mutually exclusive or contradictory groups or entities. I’ll explain in a moment. But first, for those investors who believe that the Fed’s easy monetary policy over the years is responsible – at least in part – for the long bull market in equities, you’ve been handed more time for the animal to run. At last Friday’s Jackson Hole Economic Symposium, Fed Chair Powell laid out the case for slowing the Fed's $120 billion in monthly bond purchases. But he offered no firm time table and repeated the central bank's view that the so-called 'tapering process' should not be linked to future rate hike plans, which aren't likely to begin until early 2023. Every pundit with a pulse was expecting a taper timeline. By staying quiet on that, the Fed stepped out of the way of a continuing rally. |
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May 2024
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