Here is your Monday News Dump….
Tapering could be ending much sooner than originally thought, according to CNBC.
“Comments by Fed officials suggest the central bank is likely to decide to double the pace of its taper to $30 billion a month at its December meeting next week. Initial discussions could also begin as soon as the December meeting about when to raise interest rates and by how much next year with Fed officials set to submit a fresh round of economic forecasts and projections for the fed funds rate.”
This kind of a big deal because it would highlight a major shift in Fed policy. The Fed has been focused on employment ever since the unemployment rate hit 14.7% immediately following the shutdown of the U.S economy over COVID-19 concerns. However, a more aggressive tapering policy would signal the Fed’s efforts are now more focused on restraining inflation and less on encouraging employment to return to its pre-pandemic levels.
It was a happy day on Wall Street as U.S. stock indexes finished higher as investors assessed early indicators that the Omicron Covid-19 variant may be causing milder illness than previously feared… (WSJ)
“The S&P 500 advanced 1.2%, regaining ground after closing down 0.8% Friday. The Dow Jones Industrial Average added 1.9% while the Nasdaq Composite rose 0.9%.”
The Biden Administration announced they will not be sending any American government officials to the 2022 Winter Olympics in Beijing…(NYT)
“The diplomatic boycott has been described by some critics of China in Congress as a way to hold Beijing accountable while not punishing American Olympians. Other more hawkish members of Congress, including Senator Tom Cotton, Republican of Arkansas, have called for a total boycott of the Beijing Games.”
I don’t agree with the Biden Administration, but I do agree with them on this move.