Hello community. The Fed's goal is to promote maximum employment and stable prices. So in recent times the Fed has rapidly hiked rates by 5-¼ percentage points while also reducing their security holding by $1 trillion to help influence inflation expectations.
Large companies like Amazon, Meta, Alphabet, Microsoft, Salesforce and many more began cutting their workforce in order to adjust to extant economic conditions. While price stability is key, it must not be at the detriment of conducive labor conditions. The past monetary policy tightening periods came with job losses that negatively impacted the economy. The Fed is beginning to carefully hold rates at restrictive levels so as to avert similar economic damage.
Moving from an environment of low rates to rising fed rates caused stock prices to fall rapidly. So now that the Fed is pausing the hike and giving favorable projections, investors are beginning to increase their stock holdings. Things may be coming back to normal considering the large capital raised in the recent ipos.
We project a new all time high to be made after the correction that started in January 2022 is completed.
Trade set up
Buy entry price: 4229.46
Target price: 4677.76
Stop price: 4022.85
As the trade progresses we will update the idea and indicate the time to move stops to break even. Please like and share if the idea is helpful.
Nedium Team