Today’s Fed meeting was an important one as it marks the beginning of the tightening process. However, there’s still a long ways to go. Based on the Fed’s projections, rate hikes are not expected until 2023… of course, a lot can happen until then. In this week’s commentary, I will discuss our outlook for the S&P 500 (SPY) and whether it’s affected by the Fed’s pivot, plus how we are positioned for the market’s next move. Read on below to find out more….(Please enjoy this updated version of my weekly commentary from the POWR Growth newsletter).
Every 3 months, the Fed releases its Summary of Economic Projections (SEP) which is basically a survey that Committee members fill out that gives their assessments of where inflation, interest rates, and growth will be in the future.
Given recent spikes in inflation and economic improvements, it’s not exactly surprising that many on the FOMC committee decided to increase forecasts for these measures.