How Would Fed Tapering Impact Markets? | tapering

You are viewing this post: How Would Fed Tapering Impact Markets? | tapering

How Would Fed Tapering Impact Markets?


นอกจากการดูบทความนี้แล้ว คุณยังสามารถดูข้อมูลที่เป็นประโยชน์อื่นๆ อีกมากมายที่เราให้ไว้ที่นี่: ดูเพิ่มเติม

Aug.25 Investors are waiting for the Jackson Hole symposium to start to see if Federal Reserve Chair Jerome Powell hints at how and when officials will start pulling back its bond market support. Bloomberg’s Gina Martin Adams, James Athey of Aberdeen Standard and James Bianco of Bianco Research talk about how tapering could impact markets on \”Bloomberg The Open.\”

How Would Fed Tapering Impact Markets?

Fed Tapering: What Is It, and Should Investors Prepare for a Taper Tantrum?


The Federal Reserve has started dropping hints it’s going to begin tapering the quantitative easing that has been going on since March 2020 in response to the COVID19 pandemic and subsequent economic shutdown.
We’ll explain how tapering works and give some historical context for the last time the Fed tapered — including a breakdown of the “taper tantrum” that followed — and what investors may want to consider in preparing their portfolios.
Subscribe: http://bit.ly/SubscribeTDAmeritrade
TD Ameritrade is where smart investors get smarter. We post educational videos that bring investing and finance topics back down to earth weekly. Have a question or topic suggestion? Let us know.
Connect with TD Ameritrade:
Facebook: http://bit.ly/TDAmeritradeFacebook
Twitter: http://bit.ly/TwitterTDAmeritrade
Open an account with TD Ameritrade: http://bit.ly/SignUpTDAmeritrade
tapering investing tdameritrade

Fed Tapering: What Is It, and Should Investors Prepare for a Taper Tantrum?

Jackson Hole is the ‘two-minute warning’ to Fed tapering: Investor


CNBC’s ‘Squawk Box’ team discusses markets and what may be next from the Federal Reserve with Kevin Nicholson of Riverfront Investment Group. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
Federal Reserve officials at their July gathering made plans to pull back the pace of their monthly bond purchases likely before the end of the year, meeting minutes released Wednesday indicated.
However, the summary of the July 2728 Federal Open Market Committee gathering indicated that the central bankers wanted to be clear that the reduction, or tapering, of assets was not a precursor to an imminent rate hike. The minutes noted that “some” members preferred to wait until early in 2022 to start tapering.
“Looking ahead, most participants noted that, provided that the economy were to evolve broadly as they anticipated, they judged that it could be appropriate to start reducing the pace of asset purchases this year,” the minutes stated, adding that the economy had reached its goal on inflation and was “close to being satisfied” with the progress of job growth.
However, committee members broadly agreed that employment has not met the “substantial further progress” benchmark the Fed has set before it would consider raising rates.
Addressing interest rate concerns, committee members also stressed the need to “reaffirm the absence of any mechanical link between the timing of tapering and that of an eventual increase in the target range for the federal funds rate.”
Fed officials have said repeatedly that tapering will happen first, with interest rate hikes unlikely until the process has been completed and the central bank isn’t growing its balance sheet anymore.
Markets briefly rebounded after the minutes’ release but then turned negative again, with the Dow Jones Industrial Average down more than 150 points.
The FOMC voted at the meeting to keep shortterm interest rates anchored near zero while also expressing optimism about the pace of economic growth.
While the message about tapering had been telegraphed, the Fed has a difficult communications job in making sure its strategy is clearly outlined. There are concerns in the market that the Fed might set its tapering pace on a strict course even if the economy sours.
The postmeeting statement painted a generally upbeat look on the economy, but the minutes noted some misgivings.
Officials judged that “uncertainty was quite high” about the outlook, with the Covid19 delta variant posing one challenge and inflation another. Some members noted “upside risks to inflation,” in particular that conditions Fed officials have labeled as transitory might last longer than anticipated.
Those worried about inflation said tapering should start “relatively soon in light of the risk that the recent high inflation readings could prove to be more persistent than they had anticipated.”
However, the minutes noted substantial differences of opinion, with some members even worried that inflation could go back into a downward drift if Covid cases keep rising and potentially dampening economic growth.
While the market is expecting tapering soon, it still doesn’t see interest rate hikes coming at least for another year or so. Futures contracts tied to the fed’s benchmark interest rate are pricing in about a 50% chance of a rate hike in November 2022 and a 69% chance of an increase the next month.
There also was talk about “elevated valuations” across asset classes, with some members worrying that easy Fed policy was raising prices and threatening financial stability.
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
The News with Shepard Smith is CNBC’s daily news podcast providing deep, nonpartisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/thenewswithshepardsmithpodcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
https://www.cnbc.com/select/bestcreditcards/
CNBC
CNBCTV

Jackson Hole is the 'two-minute warning' to Fed tapering: Investor

Why Morgan Stanley’s Wilson Sees Growing Risk of 20% S\u0026P 500 Fall


Sep.20 Mike Wilson, chief investment officer and chief U.S. equity strategist at Morgan Stanley, says a plunge of more than 20% in U.S. stocks is looking more like a real possibility. \”The fact that the Fed is removing maximum accommodation is a good outcome,\” Wilson said. \”But it comes with consequences for financial assets.\” He speaks on \”Bloomberg The Open.\”

Why Morgan Stanley’s Wilson Sees Growing Risk of 20% S\u0026P 500 Fall

Bloomberg Global Financial News


Bloomberg Global News brings you live coverage of the markets open and close, plus everything you need to know across business, finance, technology, politics and more daily.
Programming schedule (EST):
5:00 AM 7:00 AM: Bloomberg Surveillance
7:00 AM 8:00 AM: Bloomberg Quicktake Originals
8:00 AM 9:00 AM: Bloomberg Surveillance
9:00 AM 10:00AM: Bloomberg Markets: The Open
10:00 AM 2:00 PM: Bloomberg Quicktake Originals
2:00 PM 5:00 PM: Bloomberg Businessweek Live
5:00 PM 6:00 PM: Bloomberg Technology
6:00 PM 5:00 AM: Bloomberg Quicktake Originals
Join us in the live chat by becoming a member: http://www.youtube.com/bloomberg/join
To watch complete markets coverage on Bloomberg Television 24/7, visit http://www.bloomberg.com/live, the Bloomberg mobile app for iOS and Android TV, and on:
Apple TV: https://apps.apple.com/us/app/bloombergbusinessnews/id281941097
Roku: https://channelstore.roku.com/details/54000/bloomberg
Samsung TV: https://www.samsung.com/us/appstore/app.do?appId=G14363001012
Amazon Fire TV: https://www.amazon.com/BloombergLPTV/dp/B00FT7LGPM
Android TV: https://play.google.com/store/apps/details?id=com.bloomberg.btva\u0026hl=en_US
Connect with us on…
Twitter: https://twitter.com/business
Facebook: https://www.facebook.com/bloombergbusiness/
Instagram: https://www.instagram.com/bloombergbusiness/
Like this video? Subscribe: http://www.youtube.com/Bloomberg?sub_confirmation=1
Become a Quicktake Member for exclusive perks: http://www.youtube.com/bloomberg/join
Visit our partner channel Quicktake News for breaking global news and insight: https://bit.ly/2TwO8Gm
Quicktake Originals is Bloomberg’s official premium video channel. We bring you insights and analysis from business, science, and technology experts who are shaping our future. We’re home to Hello World, Giant Leap, Storylines, and the series powering CityLab, Bloomberg Businessweek, Bloomberg Green, and much more.
Subscribe for business news, but not as you’ve known it: exclusive interviews, fascinating profiles, datadriven analysis, and the latest in tech innovation from around the world.

Bloomberg Global Financial News

นอกจากการดูหัวข้อนี้แล้ว คุณยังสามารถเข้าถึงบทวิจารณ์ดีๆ อื่นๆ อีกมากมายได้ที่นี่: ดูวิธีอื่นๆINVESTMENT

Articles compiled by CASTU. See more articles in category: INVESTMENT

1 thought on “How Would Fed Tapering Impact Markets? | tapering”

Leave a Comment