What Does the Fed's "Sooner & Faster" Stance Mean for Markets?

(1/27/22) Markets tanked after Fed Chair Jerome Powell's pronouncement of the FOMC's heightened response to the economy with "sooner & faster" rate hikes. In reality, there was very little change from past Fed meetings, but in the presser afterwards, when Powell uttered those two words, markets collapsed and gave up all their gains. The bottom line: The Fed is going to hike rates and reduce its balance sheet, sooner than later, and more rapidly than expected. The problem for the Fed now is, the Yield Curve is already sharply declining, suggesting more economic weakness to come. The Fed doesn't want to get caught with 0% rates and a $9-T balance sheet when a recession hits, essentially with no tools to manage the economy. So which are the lesser of two evils: Raising rates heading into a disinflationary environment, and creating financial instability...but being able to back off those rates and re-expansion of its balance sheet? Meanwhile, where do investors park money? We look at some major players: AAPL, CMCSA, MSFT, - Hosted by RIA Advisors Chief Investment Strategist, Lance Roberts -------- Get more info & commentary: https://realinvestmentadvice.com/news... -------- Watch the video version of this report by subscribing to our YouTube channel: https://www.youtube.com/watch?v=YO0urLR68I8&list=PLVT8LcWPeAujOhIFDH3jRhuLDpscQaq16&index=1 -------- Visit our Site: www.realinvestmentadvice.com Contact Us: 1-855-RIA-PLAN -------- Subscribe to RIA Pro: https://riapro.net/home -------- Connect with us on social: https://twitter.com/RealInvAdvice https://twitter.com/LanceRoberts https://www.facebook.com/RealInvestme... https://www.linkedin.com/in/realinves... #FederalReserve #SoonerFaster #Inflation #Oversold #Buyers #Markets #Money #Investing