The Fed Giveth and the Fed Taketh Away with Nick Santiago 6-15-22 #399

Source:
https://www.spreaker.com/user/appeal2/nick-399

It's Fed Day. This is probably one of the most highly anticipated FOMC announcements ever. The central bank is expected to raise rates by 75 basis points today. Up until a few days ago the Federal Reserve bank was scheduled to just raise rates by 50 basis points, but that changed after the hot CPI number last week. Either way, the Fed still has a long way to go as they need to catch up to the 2-year Treasury note yield which is at 3.34%. After today's hike, the fed funds rate will be at around 1.75%, so further tightening is needed. Announcement at 2pm and Powell presser at 2:30pm.

We will also hear more about quantitative tightening (QT). This is where the central bank will start to sell assets like US treasuries and mortgage backed securities. We have heard that they are selling $95 billion a month of these securities. 

2.Gold will be in play today after the FOMC announcement. So buckle up and lets see the reaction after the Fed announcement at 2pm.

3. Bitcoin is weaker again today. It is trading around 21,600 today. While there could be some minor bounces here and there the trend is down and I expect it to ultimately trade down to around the 14,000 area. Watch if it breaks $19,700. Block, Micro Strategies and Mara have all gotten killed. Coinbase was up to 429 and is now down to 50.

4. Housing has gotten slammed. All of these stocks peaked in May 2021. Lennar is headed to $50. KB Homes topped at $52 now trading almost half. Probably have more to fall. ITB homebuilders ETF peaked at $83 and has sank like a stone. Short after a bounce.