Waiting for the Fed to text back like... Image Source via GettyImages
Jerome puts on his Zoom face.... We're imagining a "raining hundreds" background. Investors have eyes on the Fed's annual Jackson Hole meeting today, which is being held virtually. Wall Street wants to know if the central bank is prepared to wind down its massive pandemic bond-buying program, which has helped economic recovery.
Inflated = the new bloated... The Fed's "easy money" policy has helped the S&P 500 — a benchmark for US stocks — nearly double in value since March 2020. But as the economy swiftly recovers and prices rise (#flated), the central bank is considering reigning in its policy this year. Notes from the Fed's latest July meeting suggest the economy is closer to achieving the Fed’s inflation and employment goals.
We're all in the same boat... The Fed, investors, and businesses are facing the same uncertainty with Delta. That's why the Fed might not share its tapering plans today — or for months. Since the Fed's last update: Covid cases and hospitalizations have doubled, more companies and governments have re-imposed restrictions, and consumer spending and confidence have dropped. The Fed's not the only one wondering how Delta will affect recovery.