Categories: General Market Commentary- DPC
Topics: General Market Commentary- DPC

What’s Next for the Fed?

Since last week: 

Big-name retailers like Target are seeing a pullback in consumer spending. More people are starting to feel the strain and making changes. This could be a growing trend over the next few quarters.

1. Changes at the Fed

Lael Brainard has left her role as vice chair of the Federal Reserve and President Biden needs to fill the job. Will he pick someone who is largely in sync with Chairman Powell’s views or someone who will counter them? His decision will speak to where he stands on inflation. It’s a decision that will inevitably affect Fed policy and your investments, so you will need to prepare accordingly.

2. Electric Mail

In another sign that we’re going electric, the US Post Office recently announced a plan to buy over 9,000 battery electric vehicles beginning later this year. It’s expected that, starting in 2026, all new vehicles USPS puts on the road will be electric. This is a good sign for lithium miners and investors. 

3. Is Nuclear Back in Japan?

Twelve years after the Fukushima disaster, the global energy crisis is causing some in Japan to consider whether nuclear power should be an option again. Prime Minister Kishida is in favor of it and wants to revive the old reactors while building new ones. The sentiment on nuclear power is changing. That’s why uranium is in a bull market and miners and investors are profiting. 

4. Coinbase’s New Tool

Coinbase recently launched Base, a Layer-2 scaling solution that will improve overall performance and make life easier for customers. Cryptocurrency could be heading into a bull market very soon, and actions like this will bring more buyers into the sector. You want to make sure you’re holding the right assets when that happens. 

What to Look For:

The war in Ukraine is now in its second year, and there are rumblings of China offering military support. The US has been seeking out allies to impose new sanctions on China if that happens. Whichever way this plays out, the effects will be felt across the markets.

Ryan Stancil
Editor, Daily Profit Cycle