A Massive Change Likely Coming To The Fed And Markets May Not Like It
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Mott Capital ManagementInvesting Group LeaderFollow5ShareSavePlay(7min)Comments(9)Follow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryMajor Fed changes loom as Kevin Warsh may replace Jay Powell, potentially ending forward guidance and the quarterly dot plot.Warsh favors a smaller Fed balance sheet, viewing quantitative easing as fiscal policy in disguise and preferring interest rate policy for broader economic impact.Adoption of the trimmed-mean PCE as the inflation gauge could justify earlier rate cuts, with implications for yield curves and market volatility.Market constraints, especially funding market stability, will likely limit how aggressively Warsh can shrink the balance sheet or alter policy tools.Looking for more investing ideas like this one? Get them exclusively at Reading The Markets. Learn More » Anna Moneymaker/Getty Images News Major changes may be coming to the Fed in a few short weeks, and more importantly, this week's Fed meeting could very well be the end of an era, as Jay Powell takes to the podium one lastThis article was written byMott Capital Management45.84K FollowersFollowMichael Kramer is the founder of Mott Capital, and is a long-only investor who focuses on macro themes and studies trends and options activities to identify and assess entry and exit points for investments in his long-term focused thematic growth strategy. He is a former buy-side trader, analyst, and portfolio manager with 30 years of experience tracking market technicals, fundamentals, and options.Michael Kramer leads the investing group Reading the Markets, where he helps a devoted following of members to better understand what is driving trading and where the market is likely heading, both the short and long-term. Features of the investing group include: daily written commentary and videos analyzing the driving factors behind price action; general macro trend education to help members make well-informed decisions based on market conditions, interest rates, currency movements and how they all interact; chat for questions and community dialogue; and regular Zoom videos sessions to discuss current ideas and answer questions. The level of access RTM subscribers and the expertise of the source are unprecedented given that the subscription price is a fraction of similar technical coaching and mentoring services. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results.
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