Insights + Resources

The Federal Reserve Can’t Keep a Secret

Aug 27, 2021

Federal Reserve
Are the Fed presidents telling tales out of school?

If you have a secret, don’t tell anyone at the Federal Reserve Bank. They may leak the story before you’d like.

In early August, multiple regional Federal Reserve Bank presidents hit the speaking tour. They made headlines by suggesting that the economy is strong enough to justify tapering the Fed’s monthly bond purchases. As you may remember, the Fed began buying $120 billion in Treasury and mortgage-backed securities in July 2020 to help support the economy.1

But now it appears the Fed presidents were just telling tales out of school.

At its July 27-28 meeting, most Fed members agreed that “Looking ahead … provided that the economy were to evolve broadly as they anticipated … it could be appropriate to start reducing the pace of asset purchases this year.” These minutes are from the meeting on August 18.

The financial markets appeared to take the news in stride, thanks in no small part to the Fed presidents hinting at the policy change.

In the coming weeks, we’re likely to hear a lot more from the Federal Reserve. On Thursday, August 26, central bankers will meet virtually for their annual Jackson Hole Economic Policy Symposium, where Fed officials expect to guide when they could begin to pare back bond purchases.3

If all the Fed talk is interrupting your sleep, please give us a call. We’d welcome the chance to hear your perspective.

For more insights and resources, be sure to sign up for our Weekly Market Commentary. Follow our YouTube channel where we regularly post our Epic Market Minute videos. Follow us on LinkedIn, or like us on Facebook. And as always, please don’t hesitate to reach out to a dedicated service professional at Epic Capital.

Tags: , , ,

More Insights

Sep 22, 2021

Healthcare can be one of the priciest yet essential parts of life’s journey. And yet, many struggle to utilize the financial tools that may help. Take Health Saving Account (HSAs), for example.

Sep 20, 2021

If you are feeling a bit confused about the direction of inflation, you’re in good company. Some of the best and brightest economists in the country are having a tough time getting their arms around the current inflation trends. The most recent Producer Price Index reading came in above economists’ estimates at a record level … Continue reading “The Best, the Brightest, and Inflation”

Sep 17, 2021

Want to give your child or grandchild a great financial start? A Roth IRA might be a choice to consider. There are many reasons why starting a Roth IRA for a teenager may be a sound financial strategy. Read on to learn more about how doing this may benefit both of you.

Sep 15, 2021

The bull market continues, with the S&P 500 Index now up seven months in a row. Stocks have impressively gained 20% year-to-date, with the S&P 500 making 53 new all-time highs before the end of August—another new record. All of this has happened with very little volatility, as the S&P 500 hasn’t had so much … Continue reading “The Bull Market Continues … For Now”

Sep 13, 2021

It can be incredibly difficult to make sense of data. A report coming from one body may tell you one thing, and another report might seem to offer a wholly different perspective.

Insights + Resources >