The Person Who Controls Stock Market

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 Federal Reserve Chairman (In short term)


Fed raises interest rates half a point yesterday to highest level in 15 years to 4.25 - 4.5% ‼️

They expect to keep rates higher through next year, with no reductions until 2024.

The expected "terminal rate," or point where officials expect to end the rate hikes, was put at 5.1%, by FOMC's "dot plot".

💡 In simpler words, interest rates will stay higher & for longer duration.

And inflation will come down only with more job cuts & reduction in corporate earnings.

But many investors feel it is being said to avoid any big stock market rally in short term.

During a news conference, Chairman Jerome Powell said it was important to keep up the fight against inflation so that the expectation of higher prices does not become entrenched.

📌 Further he said --

"Inflation data received so far for October and November show a welcome reduction in the monthly pace of price increases."

"But it will take substantially more evidence to have confidence that inflation is on a sustained downward path."

The FOMC lowered its growth targets for 2023, putting expected GDP gains at just 0.5%. 🥵

Personally, I think he is doing the right thing to control the inflation & excessive QE in last decade.

But predicting stock market movement is really tricky in short term. 😅

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