HomeTecNewsFed eyes 3 rate increases in 2022, accelerated tapering spooking investors.

Fed eyes 3 rate increases in 2022, accelerated tapering spooking investors.

December FOMC was released on Dec. 15 at 2pm with the Fed Chair Powell’s press conference at 2:30pm upended the market to rally about 3% yesterday.

Although Powell calmed the market yesterday, today tech sector continued it’s selling off. Tech heavy Nasdaq fell as much as 2.15% as of 1pm today, current futures trading around 15900 points. S&P 500 started the day with green and currently trading in red losing about 0.5%. Dow is still green. Adobe had second worst day in a decade of losing about more than 10%. Pretty much all top tech stocks, AAPL, MSFT, AMD are all down bring the Nasdaq down about 500 points.

The Fed is buying $60 billion of bonds each month starting in January, half the level prior to the November taper and $30 billion less than it had been buying in December. The Fed was tapering by $15 billion a month in November, doubled that in December, then will accelerate the reduction further come 2022.

Fed is planning to increate the rate 3 times in 2022 as the dot plot shows. Market expectation was about 2 rate increases, but 3 rate increases seem to worry some investors.

“If you’re in companies losing money, you should sell them,” CNBC’s contributor Cramer told his audiences. Selling is surely going on today, especially on tech sector.




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