# The Fed Let the World Know it is Not Exiting its Easy Money Policy

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Last modified: 2021-01-14

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By Paul Ebeling · 2021-01-14
Tags: Shayne Heffernan on Investments, Politics, stocks, Fed, economy, DJIA, money, DIA, SPY, Bullish, sales, FOMC, MSI, NYSE, retail, buying, assets, employment, Headline News, Paul Ebeling
Signed: no (published before platform launch).
Nothing in this article is investment advice.

#Fed #money

$DIA $SPY $QQQ $RUTX $VXX

Thursday, Fed Chairman Powell said "*now is not the time*" to be discussing an exit from ultra-easy monetary policy and promised to give plenty of notice before it begins to debate scaling back its huge bond-buying campaign.

"W*e know we need to be very careful in communicating about asset purchases*," he said. "*Now is not the time to be talking about exit. I think that is another lesson of the global financial crisis, is be careful not to exit too early."*

The FOMC last month pledged to continue to make $120-B in monthly purchases of Treasuries and mortgage-backed securities until there is "*substantial further progress*" toward employment and inflation goals.

Wednesday, Fed Governor Brainard said the current program will be appropriate for "*quite some time*".

Chairman Powell said guidance is not based on any calendar date when the Fed would think about trimming back asset purchases. 

"*We will let the world know,*" he said. "*We' will communicate very clearly to the public and we'll do so, by the way, well in advance of active consideration of beginning a gradual taper of asset purchases.*"

He reinforced that message Thursday, saying the time to raise rates was *"no time soon."*

Thursday, the benchmark US stock market indexes finished at: DJIA -68.95 to 30991.46, NAS Comp -16.31 to 13112.65, S&P 500 -14.30 at 3795.54

The small caps continued their Bull start to the New Year as the Russell 2000 spiked 2.1% on the day.

Volume: Trade on the NYSE came in at 1.04-B/shares exchanged.

HeffX-LTN's overall technical analysis for the major US stock market indexes is Bullish to Very Bullish in here.

- Russell 2000 +9.1% YTD
- NAS Comp +1.7% YTD
- DJIA +1.3% YTD
- S&P 500 +1.1% YTD

Looking Ahead: Investors will receive  the December PPI, Core PPI, December Retail Sales, Retail Sales ex-auto, November Business Inventories, and January Empire State Manufacturing, followed by December Industrial Production and Capacity Utilization and the preliminary Michigan Consumer Sentiment Survey for January  Friday.

Have a healthy day, Keep the Faith!

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