Fed Selloff, Part Two💸

Table of Contents

Fed Selloff, Part Two

Yesterday, we discussed the effects of Federal Reserve Governor Lael Brainard’s comments regarding monetary policy on the market. Investors were alarmed as her comments showed that the Fed was moving quicker with policy than expected, which sent the markets tumbling yesterday. Things discussed were interest rates, but mostly the Fed’s asset portfolio, and provided with further clarification on Wednesday.

During the Fed minutes, the officials agreed that they would start reducing their balance sheet by $95 million per month, starting in May. This is a major switch from the Fed’s recent ultra-easy policy and double the rate of the last time the Fed has done this. It shows that the Fed is heavily committed to slowing down the inflation crisis, and they also look to interest rates for this. Originally, the Federal Reserve looked to raise interest rates by a quarter of a percentage point 4 times over this year, with one of them already being implemented in March. With the situation becoming dire, Fed officials are looking to raise rates by half of a percentage point, and the only thing preventing this from happening in March was Ukraine situation. Due to this new strategy, the markets fell once again as they are still adjusting to the new approach. Tech continued to get battered, with the NASDAQ down by more than 2 percent and some of its main companies posting big losses to end the day. Analysts expect the markets to continue its volatility as these are uncharted waters for the stock market now, but we always know this can be a buying opportunity. Tech names look like they are already discounted, but you might be able to grab them at an even lower price.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.