From Peter Reagan at Birch Gold Group
Looks like the latest statements from the FOMC meeting have taken their initial toll on the markets.
The Fed decided to raise rates only 50 basis points, and initiated plans to “significantly reduce the Federal Reserve’s securities holdings.” More rate hikes are on the way as 2022 continues, and starting June 1st, the QE tightening is likely to get even stronger:
The Fed also is expected to announce the start of a program to wind down its roughly $9 trillion balance sheet by $95 billion a month, starting in June.
In response to the recent announcements, on Thursday the Dow Jones tumbled almost 1,100 points. The NASDAQ also lost 5% of its value. Both losses completely erased their relief-rally gains from the day before – when stock bulls were excited the Fed didn’t raise rates higher.
Continue reading “The Fed’s “Soft Landing” Is Still a Crash… And Here’s Why”
