Hike rates

Powell Pivots: Fed to Accelerate Cut and Raise Rates in 22 to Target Inflation

As we expected thanks to heavy foreshadowing from Chairman Powell and others, the Federal Reserve closed its December meeting of the Open Markets Committee by announcing that it would “reduce [its] stimulate faster at a time of rapid inflation and strong economic growth, capping a difficult year with a pronounced political pivot that could usher in higher interest rates in 2022.” bonds faster than expected, the Fed signaled that up to 3 rate hikes could be considered for the coming year – New York Times and WSJ and Bloomberg and MarketWatch

Shock of shocks, markets welcomed news of a more hawkish Fed, likely aiding inflation-fighting efforts, even if it meant recalling an era of easy access to capital – New York Times and WSJ and Bloomberg and MarketWatch

And the bottom line on what caused President Powell to pivot so dramatically – New York Times

Across the pond, the Bank of England launched its own pivot, becoming the first major central bank to raise interest rates (0.25%) in a bid to “contain price growth “- WSJ and Bloomberg

The SEC yesterday issued a “proposal roundup” aimed at “short[e] increase monetary funds and curb[] executives’ ability to trade their own companies’ stocks,” as Chairman Gensler moves forward to “adopt a policy agenda that observers have called the SEC’s most ambitious in decades” – WSJ and Bloomberg and Law360

Retail sales rose in the United States in November for the fourth consecutive month. Although sales appear to have slowed in November compared to the previous month, the footage shows that American consumers “continued to spend even as they faced rapidly rising prices and an upsurge in coronavirus infections” – New York Times and WSJ

Reddit revealed this week that it had filed for an IPO confidentially, although it has yet to reveal when it plans to debut or what valuation it will seek – Bloomberg and New York Times and WSJ and Tech Crunch

Apple was the last major company to make it official: RTO = TBD – New York Times and WSJ and Bloomberg

Anchorage Capital, ‘one of the largest distressed-debt hedge fund investors,’ is ending its flagship fund after a nearly 20-year run and will return the $7.4 billion it manages to clients . Anchorage cited as reasons for its decision “a market environment in which cheap money helped keep stock and bond prices high while suppressing corporate defaults” – WSJ

the Time‘ The tech journalist used the pandemic last year to come up with 4 tech-based resolutions for the coming year, and we’ll give them our own endorsement – New York Times