The Fed’s Pivot: Jerome Powell’s abrupt change of course moved the central bank into inflation-fighting mode.Inflation, Explained : What is inflation, why is it up and whom does it hurt? We answered some common questions.Powell, did not explicitly endorse a faster tapering process, saying that “there’s a lot to learn and digest and think about coming up to the next meeting.” Williams, who is vice chair of the Fed’s policymaking Open Market Committee and is a top adviser to Mr. Powell indicated on Tuesday that the central bank could wrap up its bond-buying more quickly. In November, officials announced plans to wind down that program gradually through the end of the year and the first half of 2022, a process known as “tapering.” But Mr. The Fed had been buying $120 billion in government-backed securities each month throughout much of the pandemic to bolster the economy by keeping money flowing in financial markets. Powell, the Fed chair, signaled on Tuesday that the central bank could move to withdraw economic support more quickly than it initially expected and suggested that such a decision could come as soon as the Fed’s December meeting.
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Williams’s comments are the latest indication that policymakers are growing more concerned about inflation and are weighing how to respond. That, he said, would “mean a somewhat slower rebound overall” and “also does increase those inflationary pressures, in those areas that are in high demand.” He later added that a risk with the new variant is that it “will continue that excess demand in the areas that don’t have capacity, and will stall the recovery in the areas where we actually have the capacity.” “Clearly, it adds a lot of uncertainty to the outlook,” Mr. But if the new version of the virus leads to another wave of infections, it could exacerbate the disruptions that have caused prices to rise at their fastest pace in three decades. Williams said Tuesday in an interview with The New York Times. It is still too soon to know how the Omicron variant, which public health officials in southern Africa identified just last week, will affect the economy, Mr.
Williams, president of the Federal Reserve Bank of New York, said the latest variant of the coronavirus could prolong the bottlenecks and shortages that have caused inflation to run hotter than expected, and is a risk Fed officials will assess as they “grapple” with how quickly to remove economic support.
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Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.John C. 30: Companyįidelity National Information Services Inc.Ĭlick on the tickers for more about each company. Here are the 20 among the 92 with the highest upside potential, based on consensus 12-month price targets and share prices at about 12:20 p.m. Starting with the S&P 500, there are 92 stocks rated “buy” or the equivalent among at least 75% of sell-side analysts polled by FactSet.
Sell-side analysts (the ones working for brokerage firms) will incorporate their own expectations for interest rates and their effect on companies’ costs and (for the financial sector) interest margins. The interest-rate landscape may look quite a bit different a year from now. Over the coming weeks, if the Fed has a clear change in direction, a sustained downturn in stocks could create new buying opportunities for long-term investors.įor those who don’t want to wait, a list of Wall Street’s favorite stocks, based on 12-month price targets, is below. Read: Stock losses deepen as Powell says appropriate to consider faster taper Was down as much as 662 points (1.9%), while the benchmark S&P 500 Index That would presumably accelerate the increase of long-term interest rates, setting up “competition” for the attention of income-seeking investors, who have looked to the stock market for yields during a long period of unprecedentedly low interest rates.