The Fed, first out of the chute:
- I don't think I've heard more transparency from a politician
- even after such a plain-spoken speech, reporters still asked questions that were answered in the prepared remarks
- most disappointing: some questions were asked three times
- Steve Liesman actually said the question he asked was asked three times
- immediately after the remarks and Q&A, CNBC seemed to try to make Powell seem more bearish than he might have been
- analysts say they need to read the transcript
- consensus:
- Fed will announce beginning of taper next month (November, 2021)
- it will take a "good" jobs report to make that announcement
- the bar is low for a "good" jobs report
- begin taper the following month (December, 2021)
- complete taper by June, 2022; this simply means ending buying -- at least that's how I heard it -- doesn't mean start selling -- but then I may have misunderstood this
- raising rates: won't begin until taper ends
- first rate hike: no earlier than 3Q21 and we're only talking a quarter of a percent
- reappointment of Jay Powell; of course, it was never discussed, but allowing Fed members to buy shares in same companies that the Fed was buying is a huge weapon for those who want Powell removed
- what did "the market" think? LOL. The market loved it. One could literally watch the Dow move up during he prepared remarks
- if the market drops before the market closes: profit taking
- Dow up: 385 points; had been as much as 500 points up
- S&P 500: up 50 points
- NASDAQ: up 122 points
Can't wait to listen to Jim Cramer later this afternoon.
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