Trading Room Logo
  • Blog
    Sign in
    Trading Room Logo
    Trading Room Logo
    • Blog

    Tag: FED

    Follow-Up from the Fed Announcement

    What did the Central Bank have to say? Earlier today we talked about the big FOMC meeting taking place today and the announcement that the…

    Chingas X December 16, 2021
    0 Comments

    Recent Posts

    • Weekly Recap – 05-28-23
      May 29, 2023
    • Weekly Recap – 05-21-23
      May 22, 2023
    • Weekly Recap – 05-07-23
      May 8, 2023
    • Weekly Recap – 04-30-23
      May 1, 2023
    • Weekly Recap – 04-23-23
      April 24, 2023
    CATEGORIES
    • AltCoins
    • Analysis
    • Bitcoin
    • Chart Patterns
    • CME Futures
    • Coin Research
    • ETF
    • Ethereum
    • General
    • Market Collapse
    • NFT
    • Price Discovery
    • The Daily Dose

    Groups

    Newest | Active | Popular
    • Group logo of Swing Traders
      Swing Traders
      active a week ago
    • Group logo of The Daily Dose
      The Daily Dose
      active 5 weeks ago
    • Group logo of OPTION TRADER
      OPTION TRADER
      active 2 months ago
    • Group logo of Forex Signals
      Forex Signals
      active 7 months ago
    • Group logo of Day Traders
      Day Traders
      active a year ago
    See all
    © 2023 - Trading Room
    Follow-Up from the Fed Announcement

    Forum Description

    What did the Central Bank have to say?

    Earlier today we talked about the big FOMC meeting taking place today and the announcement that the Fed Chairmain Powell would be releasing.  What decisions were they going to make, how were they going to address rate hikes, what policy shifts would they be likely to strike a deal on... If we take away anything from the entire event it is 2-fold. 1 - The Fed is going to aggressively accelerate the taper of their Bond buying which has been used to stabilize the market ever since the beginning of the Covid-19 pandemic. 2 - Three rate hikes expected in the year 2022. Why is this good news?  Why would the stopping of buying bonds be a good thing and why in the world would rate hikes be applauded?  One Word:  ---NORMALCY--- Tapering off the bond purchases earlier than scheduled (June) tells the world that the economy is healthy enough to ditch the crutches.  The rate hikes mean that business and banks are healthy enough to no longer warrant the band-aid from the Federal Reserve and therefore, normalcy can return to the economic market of America.

    Was there a Market Reaction?

    You better believe there was! S&P 500 NASDAQ DOW RUSSEL Bitcoin Ethereum MidCap Shitcoin Everything moved in concert with each other as if it was the Philharmonic Orchestra playing Beethovens Symphony No. 9 in D Minor.  If you don't understand the musical reference simply look at the 8 charts in the picture above to see that everything moved at exactly 2PM - the minute Powell started delivering the announcement. Below you can see Bitcoin on the M15 Chart.  You can see that Bitcoin was actually trying to lead the way by about an hour.  Prior to 1PM it was nothing more than chop and treading water until the announcement. If you enjoyed this article, consider sharing with friends on Social Media. Lets grow the Community together!

    Report

    There was a problem reporting this post.

    Harassment or bullying behavior
    Contains mature or sensitive content
    Contains misleading or false information
    Contains abusive or derogatory content
    Contains spam, fake content or potential malware

    Block Member?

    Please confirm you want to block this member.

    You will no longer be able to:

    • See blocked member's posts
    • Mention this member in posts
    • Invite this member to groups
    • Message this member
    • Add this member as a connection

    Please note: This action will also remove this member from your connections and send a report to the site admin. Please allow a few minutes for this process to complete.

    Report

    You have already reported this .
    Clear Clear All