
Here’s What Investors Should Expect In The Near Future
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Fed Chairman Jerome Powell committed to effectively monetize any and all government spending.
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The Fed set its fed funds target rate near zero and is injecting $120 billion per month into the financial system by making securities purchases
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Upcoming financial stimulus is a positive for the market as people will spend most of what they receive
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The new Democratic government could add another $1 trillion on top of the $900 billion passed in ‘20
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Rates are rising because fed borrowing is theoretically inflationary
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Dems envision restoring top bracket of 39.6% for married couples earning above $466,000
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President elect Biden’s plan also calls for taxing dividends and cap gains at ordinary income rates
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Two Fed presidents (Patrick Harker of Philadelphia and Raphael Bostic of Atlanta) this past week raised the possibility of the central bank beginning to pare its $120 billion monthly securities purchases later this year.