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Most recently, the Federal Reserve has impacted the entire stock market through the FOMC meeting and other policy changes. In this video, I cover how the Federal Reserve shocked the entire stock market.
Link to The FOMC Meeting: https://www.youtube.com/watch?v=N9ZYIEI8pNQ
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Most recently, the Federal Reserve has impacted the entire stock market through the FOMC meeting and other policy changes. In this video, I cover how the Federal Reserve shocked the entire stock market.
Link to The FOMC Meeting: https://www.youtube.com/watch?v=N9ZYIEI8pNQ
Join our free discord here: https://discord.gg/xUWB2ExVcr
My Second Channel:
https://www.youtube.com/channel/UCPkDot_lMk7HB_c68HubbUg
Twitter: https://twitter.com/casgains
Instagram: https://www.instagram.com/casgainsacademy/
Soundtracks provided by Nanobyte, Emphermal, Defyant, and Lakey Inspired
Copyright Disclaimer Under Section 107 of the Copyright Act 1976: All rights belong to their respective owners
Over the past year, the federal reserve has served as one of the major drivers for the stock market to hit record highs over and over again, this was done through policies such as low interest rates and quantitative easing most recently federal reserve chairman jerome powell, released his Projections for the future of the stock market, which has shaken the stock market substantially. In addition to this, the fed also adjusted the capital requirements for u.s banks, which will set the stage for the future of the u.s economy. In this video, i will cover how the federal reserve shocked the entire stock market and where the fed thinks the economy and market prices are heading in the future. Welcome to cas games academy if you're new to the channel, please consider subscribing for more content like this and let's get right into it.
First to preface this video, the federal reserve definitely has a significant impact on the stock market. Therefore, it is important to consider the actions of the federal reserve and the impacts they have in this graph. The blue line is the federal funds rate and the red line is nasdaq generally, the market goes up significantly when interest rates are low. In the past couple of decades, we've seen the largest bull market that was supported by the federal reserve's low interest rates.
It's important to keep track of what the federal reserve does because often times it directly impacts the future of the stock market and the economy. As a whole, based on the government's actions, we can determine whether we should be bullish, long term on stocks bonds and maybe even cash in some cases. Over the past few months, the vaccine has begun to roll out worldwide, which has led many to believe that the economy is going to rebound quickly and smoothly. If the economy recovers, the federal reserve would no longer have to use financial policies like low interest rates in order to support consumers with no more interest rates.
We could ultimately see a stock market sell-off, as the main driver for the stock market was the reserve's actions. Yet, while all eyes are on the economy, recovering the federal reserve, chairman jerome powell believes that the economy is still unstable in the services industry, but is recovered in many other areas. In other words, there are specific industries being hit the hardest. Overall consumer spending has increased.
Recently, but there are important distinctions that must be made: household spending on goods has increased lately, but household spending and services remains low, especially for the companies that are related to the travel industry to go over what the economy is at large housing prices have increased significantly As the median listing price has gone up over 10 year-over-year, additionally, business spending is also increasing by substantial amounts right now, as businesses are preparing for a full recovery. Lastly, the unemployment rate is slowly starting to decrease, although it still remains relatively high when compared to pre-pandemic levels. Jerome powell, the federal reserve chairman, admitted that this economic recovery was because of his monetary policies and the government's fiscal policies which include the stimulus bill. This will be extremely important as i'll mention later. The economic recovery remains uneven and far from complete and the path ahead remains uncertain. Following the moderation in the pace of the recovery that began toward the end of last year, indicators of economic activity and employment have turned up recently. Although the sectors of the economy most adversely affected by the resurgence of the virus and by greater social distancing, remain weak, household spending on goods has risen, notably so far this year. In contrast, household spending on services remains low, especially in services that typically require people to gather closely, including travel and hospitality.
The housing sector has more than fully recovered from the downturn, while business investment and manufacturing production have also picked up the overall recovery in economic activity. Since last spring is due importantly, to unprecedented fiscal and monetary policy, actions which have provided essential support to households, businesses and communities. Essentially, powell is saying that without the government support, the economy wouldn't be recovering this fast. All of this government support will lead to temporary inflation over the next few months 12 month.
Measures of inflation will move up as the very low readings from march and april of last year fall out of the calculation. Beyond these base effects, we could also see upward pressure on prices if spending rebounds quickly as the economy continues to reopen, particularly if supply bottlenecks limit how quickly production can respond. In the near term, however, these one-time increases in prices are likely to have only transient effects on inflation. The median inflation projection of fomc participants is 2.4 percent this year and declines to 2 next year before moving back up by the end of 2023..
This is where you might become skeptical. The federal reserve is projecting an inflation rate of 2.4 percent which isn't much higher than the federal reserve's goal of achieving 2 inflation every year. Yet the fed's projected inflation rate was actually quite high, as their previous estimate for inflation was at 1.8 percent for 2021. Nevertheless, that increase honestly isn't much and it's because the federal reserve believes they found the secret sauce and by that i'm talking about inflation expectations.
Powell believes that if the federal reserve expects and has a goal to keep inflation at two percent, then inflation will be anchored at two percent over the long run, as people will expect the fed to create policies that keep the inflation rate at two percent. This will have a direct impact on the bond market and the actions we should do with the stock market. You can only go out to dinner once per night, but a lot of people can go out to dinner and so and they're not doing that now. They're not going to restaurants not going to theaters that part of the economy and travel and hotels that part of the economy is, is really not uh functioning it at full capacity right, but, as that happens, people can start to spend. It's also wouldn't be surprising if and you're seeing this now, particularly in the goods economy, they'll be bottlenecks, they won't be, they won't be able to service uh all of the demand, maybe maybe for a period, so those things could lead to and we've modeled that other People have to we've ma and what we see is relatively modest increases in inflation. So but those are not permanent things. You know what will happen is the supply side. The the supply side in the united states is very dynamic.
People start businesses, they they they reopen. Restaurants, you know uh, the airlines are, will be flying again. All of those things will happen, and so it'll turn out to be a one, a one time sort of bulge in in prices, but it won't change inflation going forward because inflation expectations are strongly anchored around two percent. We know that inflation dynamics do evolve over time.
There was a time when, when inflation went up, it would stay up and, and that time is not now that hasn't been the case for some decades and we think it won't it won't. We won't suddenly change to another regime. These things tend to change over time and they tend to tend to change when the central bank doesn't understand that having inflation expectations anchored at two percent is the key to it. All we, the the having them anchored at two percent, is what gives us the ability to push hard when the economy is really weak.
If we saw uh inflation expectations moving materially above two percent, of course, we would conduct policy in a way that would would make sure that that didn't happen. We're committed to having inflation expectations anchored at two percent, not materially of or be above or below, two percent. Essentially, whether or not you personally believe that inflation will be at two percent does not matter, as the federal reserve will create policies to try to balance the rate at two percent. Given the information that we know, it's clear that we should be bullish on the stock market for long-term gains, this was seen in the latest move made by the fed that choose to not support the bond market.
On march 19th, the federal reserve decided to not extend a time on the supplementary leverage ratio. The supplementary leverage ratio is the ratio of capital that banks must have relative to their assets. During the pandemic, the federal reserve allowed banks to subtract their bond and cash holdings from their assets, which made it so that banks could loan out more money with less capital. Most recently, the fed announced that this temporary rule would expire on march 31st, which clearly shows the fed won't support bond prices. When bond prices go down, then bond yields go up. Because of this we could see a further correction in tech stocks, but at the same time, bonds are not worth investing at the moment as the 10-year treasury yield is lower than the inflation rate. Therefore, we should go along on stocks rather than bonds for long-term gains. Let me know what you think about the federal reserve's policies.
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The CPI is a lie. The government has every reason to lie about this figure.
Have you noticed that whenever Powell speaks, his nose grows one inch??
2021 online stock market is just difficult and unbelievable, I rather invest my money on crypto.
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Bitcoin is the future investing in it now will be the wisest thing to do especially with the rise and help of Mr Chris
Inflation, no way. Only in the stock market, or real estate. No more.
It's hard to tell my full story because there just isn't enough space to write it. Long and short story is that I changed over the years for myself and some crazy fraudulent account managers and lost so much money that I had to apply for student loans to keep from college, that was until I was introduced to Mr. Stuart Michael at At Primero , I was skeptical because I had traded and lost with many account managers, but after some shoving from schoolmates and friends who exchanged with him, I decided to give it a try and that was the beginning of my success story, I am very happy to trust him Against my not much better judgment lol, in the last 6 months of trading with him I made a cumulative profit of one hundred and thirty. thousand pounds, I couldn't believe it until I made my first withdrawal, I am now sharing the same testimonial that I shared about 6 months ago. w .h. a. t .s .a. p. +4 4 7 4 5 9 3 7 2 6 4 0
2021 stock market has been wired and proven difficult to invest
Stock's are good but i swapped and invested in bitcoin and other cryptocurrency , I have been making good profits.
Bitcoin is the future, investing in it now will be wisest thing to do especially with the current rise
Crypto is the future 🏅
nvesting in Bitcoin and crypto currency is the investment anyone can do this season because it has made a lot of people billionaires today
Mrs Maria legit and her method works like magic I keep on earning every single week with her new strategy
People of the nation says that by the end of 2021 bitcoin will be valued at $100,000 despite some speculation that the back and forth struggle of the current price value between $30,
000 to $34,000 is an indication that bitcoin value of plumeth deep, I have made so much money within two months trading with Mrs Stephanie expert trader.
Did he seriously just say that inflation will stay around 2% because the Fed says it will?? So we have narrative driven interest rates now?
Hi guys..let's do a challenge, who will have the highest return on us stocks from buying and holding one company( from march 29th to april 2nd)i choose microsoft..who can beat it tell me?! 😎
Investing in Bitcoin and crypto currency is the investment anyone can do this season because it has made a lot of people billionaires today
So please tell me what was the shock staement bt the FED indicated by this title?
Though there has been a recent crash in the stock market, you as intending or old investor, can still take advantage and make a whole lot of profit when you buy into the dips technically. 😉 Work with this financial guru Miriam Aspen George . God bless you!
T om T he T alker 🎤
Market is going to crash! Real fucking bad. Take out your cash now and run 🏃♂️
Airlines won't be flying, cruises won't be cruising, the more psyop and mainstream media lies people see the less likely they are to take the rushed, experimental, no-liability genetic therapy, no GMO, no GMO passport, no fly no cruise, in the UK no booze in pub, in Israel no shoppee in grocery store without green passport, in China no money, no social credit score
I just mortgaged my home and my parents home and took a loan against my 401K, took cash advance and dump it all in AMC… I’m thinking about what color combo Lambo to get…?! Any advice? 🥳🥳
People will be kicking themselves in few weeks if they miss the opportunity to buy and invest in Crypto as it's retracting….BE WISE
Say bye bye to the stock market for a long time. Thanks to biden! If I were you, I would start pulling out all your money now!
The federal reserve is NOT the government. It is a private company.
A lot of people still have this great fear on where to invest their money when it comes to trading, without any doubt i will strongly advise bitcoin trading which is really going well now because the market is still bullish. Bitcoin is defying all laws of nature and TA in this new era with many speculations and many predictions gone wrong, it's outrightly wrong to just sit back hodl and wait maybe incur some losses along the line, that's a wrong mindset for an investor because as an investor finding ways to always increase and stack up more coins thereby making prof!ts should be the way of life, even experienced traders are in a doubt to take long or short position.Prices rocket up inconceivably bitcoin on it's way to $60,000. If said thing is to happen, it will be very unwise for you not to know how to Increase your Bitcoin instead of Just Hodlin. I got this tips first hand from Henry steve He is always one step ahead of other traders, he fully monitored all my trades to avoid me making mistakes and losing my money. My earnings has increased drastically from 2 Bitcoin to 9 Bitcoin in just 4 weeks and some days. I have full confidence in his tradin abilities. You all can reach out to him through ω𝐇𝓐𝓽ѕ𝓐ρ𝐩 (+1 4704100974
When dumb people continue to think this isn't a pandemic and make it worse, some of us are heavily benefiting in the bear stock market! But, it all gets that much better because of Ethereums price going 100x in July and Bitcoin raises to 100,000 year end. 🐺🐺🐺 Keep it up mi amigos😃😃😃
Was so amazing to get involved in the channel and to be crypto Investor earner, really transformed me financially
Inflation is already above 10%. Look at your local stores, check housing prices, gas abs a lot more, but yeah your income is still the same
Long story short fed has to make their money back trump called it from the beginning
"Shocked The ENTIRE Stock Market" Yet the stock market didn't notice. Dumb market. Smart clickbait video according to 98% of morons.
The FED is neither Federal nor a reserve. It's a private corporation engaged in fleecing citizens of everything they thought they owned. HJR 192. Look it up. lol
Investing in Bitcoin and crypto currency is the investment anyone can do this season because it has made a lot of people billionaires today
House prices up, unemployment up. Doesn't bode well for the future. How is Mr Average gonna afford a house, or the rent that implies if he is not working to full availability? Dips occur every 15-20 years. Remember 2008? You do the maths! But – random chaos doesn't have an inviolable rule, and COVID is blind to the stock market, it doesn't care.
The fed has been quantitative easing way before the virus was even a thought. So it it bullshitt what Powell had said.
Stocks are good but I swapped and invested on crytpo currency(Bitcoin) I've been earning much from it💵people will be kicking themselves in regrets in few weeks if they miss this opportunity of buying and investing in Bitcoin (Cryptocurrency)
They are the ones hurting the world , blow the nose regular and u don’t get any corona , if u don’t blow nose regular then u get a cold or flue. U can’t stop a flue , stop hurting our life’s and planet , u all have no common sense. No flue deaths recorded if u 50 years old on all past flue , we have had worse. Track down who benefit drink worlds biggest scam. A flue can always kill some , I feel shame that all people scammed and hurt so many , ur all crazy , how many people they say die corona but didnt