[CNBC Television] What investors can expect if the Fed announces a taper today

🎯 Загружено автоматически через бота: 🚫 Оригинал видео: 📺 Данное видео принадлежит каналу «CNBC Television» (@CNBCtelevision). Оно представлено в нашем сообществе исключительно в информационных, научных, образовательных или культурных целях. Наше сообщество не утверждает никаких прав на данное видео. Пожалуйста, поддержите автора, посетив его оригинальный канал. ✉️ Если у вас есть претензии к авторским правам на данное видео, пожалуйста, свяжитесь с нами по почте support@, и мы немедленно удалим его. 📃 Оригинальное описание: Jon Najarian and Joe Terranova join the ’Halftime Report’ to discuss the potential for a Fed taper announcement today and what stocks they’re most worried about dropping as a result. For access to live and exclusive video from CNBC subscribe to CNBC PRO: When the Federal Reserve adjourns its meeting Wednesday, it will be doing more than scaling down its economic aid. The central bank will be charting a course for its post-pandemic future. Virtually everyone who cares about such things anticipates the policymaking Federal Open Market Committee, upon the conclusion of its two-day meeting, will announce that it is reducing the amount of bonds it buys each month. The process, know as “tapering,” probably will commence before November ends. In doing so, the Fed will be stepping away from a historic level of support for the economy and into a new regime in which it will still be using its tools to a lesser degree. Though the move to cut the $120 billion a month in bond purchases has been well telegraphed, there is still risk for the Fed in how it communicates where it goes from here. Talk up the tapering too much, and investors will get nervous that interest rate hikes are coming. Soft-pedal the move too much, and the market could think the Fed is ignoring the inflation threat. There’s risk to both too much optimism and too much pessimism that the FOMC and Chairman Jerome Powell will have to avoid. “There’s just a very wide range of possible outcomes. They need to be nimble and responsive,” said Bill English, a former senior Fed advisor and now a professor at the Yale School of Management. “I worry that the markets will think that they’re on a steady track to run purchases down and then begin raising rates when they may just not be. They may have to act more quickly, they may have to raise them more slowly.” As things stand, the market is betting the first rate increase will come in June 2022, followed by at least one — and perhaps two — more before the year is out. In their most recent projections, FOMC members indicated a small likelihood of pulling the first hike into next year. For Powell, his post-meeting news conference should be an opportunity to stress the Fed is not on a preset course in either direction. “He needs to note that there are risks on both sides. Of course, there are risks that the inflation we’ve seen proves more persistent than they hoped,” English said. “I’d like to hear him say there are downside risks. Fiscal policy is tightening a lot.” Indeed, at a time when the Fed is starting to pull back on its monetary policy help, Congress is providing less help from its side after pouring more than $5 trillion into the economy during the Covid crisis. Whereas fiscal spending added nearly 7.9% to the economy to start 2021, that has morphed into a drag that will see it subtract close to 3.8% by the middle of 2022, according to a gauge developed by the Brookings Institution’s Hutchins Center on Fiscal and Monetary Policy. That makes circumstances even more challenging for the Fed. ‘A big change in tune’ The committee uses its post-meeting statement to describe how it feels about economic conditions — GDP, employment, housing, trade and the pandemic’s influence – and how they could feed into policy. Through the pandemic, the Fed has developed boiler-plate language stressing economic growth but continued risks from the pandemic that necessitate easy policy. This meeting, though, will likely see substantial changes to that statement to lay out a new course. » Subscribe to CNBC TV: » Subscribe to CNBC: » Subscribe to CNBC Classic: Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: Connect with CNBC News Online Get the latest news: Follow CNBC on LinkedIn: Follow CNBC News on Facebook: