June 16, 2021, 2:31 pm EDT
Negative Reaction from Fed’s Meeting
Stock market reaction is in red for most stocks after the Fed’s meeting. DJIA is down about -300 at this moment. Only JP Morgan (JPM) and some banks are doing fine. Raising interest rates in 2023 is not a big problem for now. The main concern is whether the Fed and US policymakers are aware of the inflation risk and ability to control to a manageable level.
In our opinion, Fed is not trustworthy because of its market-friendly policy. Inflation is rising quickly from CPI, PPI, housing gasoline, milk, and everywhere. It could breakout to 13 years high (2008) if the condition remains. Eventually, Fed may be forced to increase its interest rates and cause a hard landing.
Meantime, stay cautious and defense your investment decision and portfolio management.