The Fed Meets Again Tomorrow

Over the weekend, Elon Musk gave himself a new title. He’s now the Technoking of Tesla. That’s not all. The CFO is also the Master of Coin. Admittedly, I’m not exactly sure what this is going to prove, but like all things Elon, it’s somewhat entertaining.

The Federal Reserve meets this week, on Tuesday and Wednesday. The Fed probably will not announce any policy changes. The big changes may come in the Fed’s economic expectations. In fact, Jerome Powell has hinted at such in recent weeks. The Fed chairman also believes that the current 6.2% unemployment rate doesn’t tell the true picture of the economy. In fact, there’s a lot more labor slack than that figure implies.

The Fed isn’t alone. Goldman Sachs now expects to see 8% economic growth this year and for the unemployment rate to fall to 4%. Goldman sees unemployment falling to 3.5% next year and to 3.2% in 2023.

Tomorrow is the one-year anniversary of the Dow Jones Industrial Average plunging 12.93%. That was the second-worst daily loss in the Dow’s 125-year history. As far as points are concerned, the Dow lost 2,997 points that day. We’re up 62% since then.

Last March 16 was actually worse than the infamous Black Monday crash of 1929. That gave us the famous Variety headline “Wall St. Lays an Egg.”

The stock market is mostly quiet so far this morning. On our Buy List, AFLAC (AFL) is up to a new 52-week high.

Posted by on March 15th, 2021 at 11:35 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.