The Fed has announced it will speed up its bond-buying program next year. CNBC reports the Fed will be buying $60 billion of bonds each month starting in January. That’s half the level prior to the November taper and $30 billion less than it had been buying in December. After that, the central bank expects to start raising interest rates. Projections indicate that officials see as many as three rate hikes in 2022, with two in 2023, and two in 2024 as well.
CNN Business/Julia Horowitz
Interest rates are set to rise next year. Here’s what that means
The Federal Reserve has sent a clear signal that the era of rock-bottom interest rates will end in 2022.
What’s happening: Rates have been near zero since March 2020, when government leaders around the world shut down the economy to slow the spread of Covid-19. But on Wednesday, the Fed — in addition to announcing a faster end to its emergency bond-buying program — projected that its benchmark interest rate could rise to 0.9% in 2022.
The policy pivot, which comes as inflation rises at the fastest pace in almost four decades, could have big ramifications for markets and the economy.
Keep reading the story, here.
Kitco News/Jim Wyckoff
Gold, silver see solid price gains, post FOMC
Gold and silver prices are posting good gains in early U.S. trading Thursday. The metals market traders on this day are reckoning that rising inflation prospects are bullish, as shown by market history. A lower U.S. dollar index today is also friendly for the metals bulls. The safe-haven metals are rallying despite upbeat trader and investor risk appetite late this week. Trading in the metals markets this week is a prime example of the old trading adage, “markets can remain illogical longer than traders can remain solvent.” February gold was last up $24.80 at $1,789.30 and March Comex silver was last up $0.715 at $22.265 an ounce.
Global stock markets were mostly up in overnight trading. U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins, including the S&P 500 hitting a new record high overnight.
Continue reading, here.
Inflation and supply chain issues ‘are not going away’: Wealth management expert
Lebenthal Global Advisors President Dominick Tavella discusses inflation and supply chain issues impacting the economy and his market outlook for 2022.
You can watch the full interview, here.