Friends,
The Fed has entered one of the most-difficult phases of its pandemic response as it begins to dial back stimulus measures even before the full effects of its policies are felt and amid new risks. Yesterday (12/15/2021), the Fed announced it would reduce its bond purchases by $30 billion per month, which effectively would end the program in March of 2022 (not June as previously stated). Also, Fed Chairman Powell discussed three rate hikes next year up from just one mentioned during the prior committee meeting.
Read the latest Markets in a Minute for a look under the monetary-policy hood and the implications for the markets and the economy.
Matt and Andrew