Home 2021 Fed Policy Remains Firmly in Economic Rescue Mode, Bulls Continue to Run

Fed Policy Remains Firmly in Economic Rescue Mode, Bulls Continue to Run


#inflation #Fed


Inflation numbers this yr may cause headaches for families concerned about food, gas bills and a return to 1970’s-style price spikes“–Paul Ebeling

Headline inflation fell from May to June last yr, then spiked in the following months as the recovery began.

That will mean higher inflation numbers this Spring, but possibly lower numbers in the Summer.

Investors will be listening closely to how the Fed talks about those price moves.

The Fed has pledged not to react to rising prices by raising interest rates too quickly to halt economic and job growth. Instead, it says that it will wait for a well-established trend in which inflation “has risen to 2% and is on track to moderately exceed 2% for some time.

Fed Vice Chairman Clarida said that phrase “refers to inflation on an annual basis,” implying that the 2% mark must must be maintained for 12 months

The Fed’s policy remains firmly in rescue mode, with interest rates pinned near Zero and no change expected for perhaps 3 yrs to come. The US still is about 10-M jobs short of where it was last February before the instant recession brought on by the attack of The China Virus.

So far the Y 2021 market forecast looks bright, when that changes we will let you know.

Monday, the benchmark US stock market indexes finished at: DJIA -36.98 to 30960.00, NAS Comp +92.93 at 13636.00, S&P 500 +13.89 at 3855.36.

Volume: Trade on the NYSE came in at 1.2-B/shares exchanged.

HeffX-LTN’s over all technical outlook on the major US stock market indexes is Bullish with a Very Bullish bias as the NAS Comp and S&P 500 marked another record close Monday

  • Russell 2000 +9.5% YTD
  • NAS Comp +5.8% YTD
  • S&P 500 +2.6% YTD
  • DJIA +1.2% YTD

Looking Ahead: Investors will receive the Consumer Confidence Index for January, the S&P Case-Shiller Home Price Index for November and the FHFA Housing Price Index for January Tuesday

Have a healthy day, Keep the Faith!

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Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.