Three Stock Market Stories You Might Have Missed in June
June threw some interesting news our way, even as the stock market entered the sleepy months of summer. As a stellar first-quarter earnings season wrapped up, investors zeroed in on recovery, inflation, and monetary policy. These topics got plenty of media attention, but a look beyond the popular headlines can tell you a lot about what's likely to drive the market in the second half of the year.
The Fed's modest shift in expectations was well documented following the Open Market Committee (FOMC) meeting in June. The central bank previously committed to keeping rates low through 2024, but the Fed moved that timeline up by a year due to new economic data showing a faster-than-expected economic recovery and higher-than-expected inflation. That's pretty big news on its own, but the so-called "Dot Plot" suggests an even more extreme pivot occurring among monetary authorities.
The Dot Plot shows the target interest rates for each member of the FOMC across various time frames. None of the 18 committee members are seeking rate hikes this year, but seven of them are targeting higher interest rates in 2022. Six more members are targeting hikes in 2023. None of these future changes are set in stone, but it illustrates an important story going on beneath the surface.
Source Fool.com
