NVDA
NVIDIA
-- 127.310 TSLA
Tesla
-- 298.270 PLTR
Palantir
-- 87.260 HIMS
Hims & Hers Health
-- 39.750 TEM
Tempus AI
-- 58.090 
Don't fight the Fed. Be prepared for the policy decision.
There is a cliché on Wall Street: Don't fight the tape, don't fight the Fed.
Investors around the world are closely watching the latest decision of the Federal Reserve on Wednesday.
As concerns about inflation have intensified, CNBC Fed survey respondents believe that the Fed will announce its decision to cut interest rates on Wednesday and start raising interest rates earlier than previously predicted.
What's Fed tapering?
Buying assets-backed securities to stimulate economic recovery is one of tools used by the U.S. Federal Reserve to manage the health of economy.
Such asset buying, along with a low interest rate is called quantitative easing (QE). It's a way of pumping money into the economy.
When the Fed believes that they economy has recovered sufficiently, it will wind down asset purchases. This process is called tapering.
When the Fed believes that they economy has recovered sufficiently, it will wind down asset purchases. This process is called tapering.
What's the effect?
Reduction usually heralds the end of quantitative easing financial policies. And it’s a signal of monetary tightening.
In other words, the interest rate will rise and we need bear higher costs such as company borrowing costs, mortgages, auto and housing loans.
In other words, the interest rate will rise and we need bear higher costs such as company borrowing costs, mortgages, auto and housing loans.
Normally, the volatility of stock markets will increase as the tapering looms.
Knowing more about the Federal Reserve is also helpful for your trading.
![]()
Click to access the free course:
Knowing more about the Federal Reserve is also helpful for your trading.
For more investment knowledge and trends, follow 'moomoo Courses' to stay tuned!
$S&P 500 Index (.SPX.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Nasdaq Composite Index (.IXIC.US)$
$S&P 500 Index (.SPX.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Nasdaq Composite Index (.IXIC.US)$
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo Learn
Moomoo Learn Official Account
Easy learning at moomoo Learn.
Let's trade smarter！
29K
Followers
105
Following
29K
Visitors
Follow
最紧要有牛牛换 : I like it
SG men : What time?
Win All Money : Hi is there a course on how to trade options on Moomoo?
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Will73 Win All Money : https://youtu.be/ou66SXFpOek
Moomoo Learn OP Win All Money : Yes, for sure!!! You can access the course by: Go to Courses- Categories-Options.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
We plan to creat new options courses. It would be helpful to share more about your learning needs.
Moomoo Learn OP SG men : The Federal Reserve concluded its two-day meeting and announced plans to end its bond-buying program but keep rates unchanged at 2pm Eastern![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
ModernDayCaesar : Like it![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Win All Money Moomoo Learn OP : Hi do moomoo allow cash secured put & cash covered call?
I tried buying cash secured puts but no premium was paid.
Or is there a specific timeline (for example, 1 month ahead of time) that allows premium?
Cold Coffee Win All Money : might try to ask customer service