fbpx

The Fed Can’t Keep A Secret

thefed

The Fed Can’t Keep a Secret

If you have a secret, don’t tell anyone at the Federal Reserve Bank. They may leak the story before you’d like.

In early August, multiple regional Federal Reserve Bank presidents hit the speaking tour. They made headlines by suggesting that the economy is strong enough to justify tapering the Fed’s monthly bond purchases. As you may remember, the Fed began buying $120 billion in Treasury and mortgage-backed securities in July 2020 to help support the economy.1

But now it appears the Fed presidents were just telling tales out of school. At its July 27-28 meeting, most Fed members agreed that “Looking ahead… provided that the economy were to evolve broadly as they anticipated … it could be appropriate to start reducing the pace of asset purchases this year.” These minutes are from the meeting on August 18.2

The financial markets appeared to take the news in stride, thanks in no small part to the Fed presidents hinting at the policy change.

In the coming weeks, we’re likely to hear a lot more from the Federal Reserve. On Thursday, August 26, central bankers will meet virtually for their annual Jackson Hole Economic Policy Symposium, where Fed officials expect to guide when they could begin to pare back bond purchases.3

If all the Fed talk is interrupting your sleep, please give us a call. We’d welcome the chance to hear your perspective.

1. Brookings.edu, July 15, 2021
2. FederalReserve.gov, August 18, 2021
3. CNBC.com, August 20, 2021

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.

Dr. Jason Van Duyn
586-731-6020
AQuest Wealth Strategies
President

Dr. Jason Van Duyn CFP®, ChFC, CLU, MBA is a Registered Representative with and Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA & SIPC. The LPL Financial registered representative associated with this site may only discuss and/or transact securities business with residents of the following states: IN, IL, TX, MI, NC, AZ, VA, FL, OH and CO.

Feel free to share this with your friends on social media or email

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email

The September Effect

The September Effect The stock market notched its 7th straight month of gains in August, and the Standard & Poor’s 500 index has set 53

Read More »

401(k) Millionaires

401(k) Millionaires Your workplace retirement account can play a critical role in your overall retirement strategy. However, some have gone further with the accounts than

Read More »

Mixed Signals on Inflation

Mixed Signals on Inflation Are you having a tough time keeping track of inflation’s mixed signals? You’re not alone. Consumer prices in July climbed at

Read More »

A Wall of Worry

A Wall of Worry Have you ever heard the Wall Street expression, “markets climb a wall of worry?” It’s the idea that financial markets are

Read More »

Chinese Stocks Under Pressure

Chinese Stocks Under Pressure With overseas investments, we remind people that, “international markets carry additional risks, which include differences in financial reporting standards, currency exchange

Read More »