What’s the Fed’s Master Plan?

What’s the Fed’s Master Plan?

Wall Street is always searching for a hero to embrace or a villain to blame. And right now, Fed Chair Jerome Powell is the villain.

After the September Fed meeting, Powell said interest rates may be heading higher for longer than anticipated and that “no one knows whether this process will lead to a recession, or if so, how significant that recession will be.”

But a closer look at available data suggests a different story.

In the chart below, we see that traders expect short-term rates to peak next year and perhaps trend lower by the end of 2023, which could mean that Wall Street is prepared to see its “villain” as a “hero” when the Fed tames inflation.

We know this year has had its ups and downs. Just when it appears to have turned a corner, something else happens, and the markets are under pressure again.

But I’m optimistic that the Fed has a plan, and I’m looking forward to the day when Fed Chair Powell has good news to share.

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. It may not be used for the purpose of avoiding any federal tax penalties. 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 is not affiliated with the named 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. Copyright 2022 FMG Suite.

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

Mortgages in Retirement

Mortgages in Retirement Anyone who has gone through the process of mapping out their retirement knows there can be a lot to keep in mind.

Read More »

Happy Thanksgiving 2022

Happy Thanksgiving 2022 The warmth of the holiday meal beckons. Thanksgiving is a time for gathering with loved ones and observing gratitude. So, as you

Read More »

Emotional vs. Strategic Decisions

Emotional vs. Strategic Decisions Information vs. instinct. When it comes to investing, many people believe they have a “knack” for choosing good investments. But what

Read More »