“Outsmart the Crowd: Prepare for an Upcoming Fed Move that Will Leave You Craving a Recession in 2 Weeks” – Written by Lyn Alden

by | May 17, 2023 | Self Directed IRA | 1 comment

“Outsmart the Crowd: Prepare for an Upcoming Fed Move that Will Leave You Craving a Recession in 2 Weeks” – Written by Lyn Alden




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Lyn Alden, a renowned financial analyst, warns that in only two weeks, the Federal Reserve will make a move that will make people pray for a recession. In her recent article, she highlights the probability of the Fed reducing its asset purchases and the aftermath of such a decision.

The market is currently eagerly waiting for the Federal Reserve’s decision, which is due in two weeks, on the 28th of July. The Fed has been purchasing $120 billion in assets every month. These purchases are aimed at propping up the economy by stimulating lending and keeping interest rates low.

Alden notes that the economy has been growing and recovering faster than expected, and the Fed’s asset purchases may no longer be necessary. As a result, the Fed is likely to taper its asset purchases shortly. This decision, albeit necessary, could cause some economic turbulence.

Alden goes on to explain that when the Fed reduces its asset purchases, bond prices will fall, and interest rates will rise. This rise in interest rates will have multiple and complex repercussions throughout the economy.

One of the most significant impacts of rising interest rates is that businesses will find it harder and costlier to borrow money. This means that there will be a reduction in business investments, which will ultimately lead to a slowdown in the economy. Additionally, mortgages, car loans, and credit card rates are all tied to interest rates. As a result, borrowing will become costlier, thereby restricting consumer spending. This will have a dampening effect on the economy.

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The downside to reducing asset purchases is that it could stifle the current pace of economic growth and job creation. With a reduction in economic output, inflation could also rise, which could further hamper economic growth.

Alden’s prediction is that the Fed’s move could lead to a recession. She recommends that investors be cautious and take necessary measures to protect themselves. She suggests that investors move towards defensive sectors like utilities and healthcare, as well as safe-haven assets like gold and government bonds.

In conclusion, the Federal Reserve’s decision on reducing asset purchases is only a fortnight away, and it could cause significant economic upheaval. Alden’s prediction of a potential recession is concerning, but it’s crucial to stay informed and take necessary measures to protect oneself during this time of turbulence.

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  1. Charles Savoie

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