Hedge Fund
Threading The Needle - June 17, 2021
June 2021 - Hedge Fund
In a masterful performance the Federal Reserve this week signaled that it recognized inflation running well ahead of targets. But the committee members speculate that the price increases will be transitory, suggesting that the onetime re-opening trade, enormous pent-up demand, as well as supply chain shocks are largely to blame, and as such, inflation will moderate shortly. This belief allowed the committee to maintain its current rate and asset purchasing posture. The Fed did, however, signal a timing change for the expectation of rate increases from 2024 to 2023.
All in all, a performance designed to assure investors that the members are aware of the inflation risks but don’t want to spook the markets or upset the economic recovery.
Message to investors- party on!!
To read the entire post click here.