The notes released this week from the Federal Reserve Board and the Federal Open Market Committee Central Bank’s December meeting are pretty much what we expected — stressing the Fed’s commitment to maintaining a restrictive policy stance until inflation is on a sustained downward path to 2%.
Did you feel a glimmer of hope in December when the Federal Fund Rate increased only half a percent instead of the previous three consecutive three-quarter rate hikes? Today’s notes release are a bit of a killjoy for that glimmer. “A slowing in the pace of rate increases was not an indication of any weakening of the Committee’s resolve to achieve its price-stability goal or a judgment that inflation was already on a persistent downward path” the report stated. Not surprising at all that the Dow cut gains after the report was released.
It’s a New Year. But it’s looking like it’s going to be a l.o.n.g. year already.
To which we say, so what? Or as Alfred Neuman would say, “what, me worry?”
Why? Because you, dear Reader, should not be concerned with hourly, daily, weekly, or even monthly movements. As we have counseled time and again, don’t bet against the stock market long term. Instead, take the time to learn the basics and invest patiently.
P.S. Read the fascinating account of Alfred Neuman’s life in this 2016 article from The Paris Review.
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