Monday, August 9, 2021
The Nasdaq Index, made up of mainly hi growth technology stocks led the markets to a record close on Friday, despite the growing concerns about the spread of the Delta strain of the coronavirus and the growing evidence that inflation is not as “transitory” as the Federal Reserve has been forecasting.
A growing number of voices, including Senator Joe Manchin of West Virginia, are concerned about signs of increasing inflation being fueled by the Fed’s “Easy Money” policies, and bond buying programs.
Starting to look like Fed may be forced to curtail their $120 Billion/month bond buying program, sometime in the Fall or before year end.
Last time there was talk of a Taper in this program markets had a sharp decline. Can interest rates remain at record lows without this bond buying support from the Fed?
Stay Tuned