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Updates 11:15 PM EST- Monday (for Tuesday 6/15/21)
All eyes on the Fed
FOMC June meeting starts on Tuesday, culminating in the announcement at 2 PM EST on Wednesday. According to WSJ:
Federal Reserve officials could signal this week that they anticipate raising interest rates sooner than previously expected following a spate of high inflation readings.
At the end of the March meeting, the Fed dot-plot showed that most Fed officials expected to keep the Fed's benchmark interest rate near zero through 2023. However, the CPI has jumped from 2.4% in March, to 4.2% in April, and 5% in May. Therefore, there are now more speculations that the June dot-plot will show more officials expecting to raise rates in 2022 or 2023.
Additionally, WSJ speculated that the Fed will begin discussing tapering their bond purchase program (Treasury and mortgage bonds).
There are many hedge fund managers and bankers who firmly believe that inflation is here to stay. Only time will tell, but for the very short-term, we wouldn't bet against the Fed yet. It's one thing to lock in profits, but we are not planning to bet on a serious pullback just yet.
Read the rest of this analysis, and get the latest entry/exit signals for SPY QQQ TQQQ IWM SPX NDX based on VIX here.