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Daily Scoop 22-1-26

Daily Scoop 22-1-26

👋 Your Wednesday Scoops - McD's racial audit & Walmart's indoor farm

January 26, 2022

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Today's Scoop:Jitters

Big Picture

Policymakers think the jobs market has fully recovered.
High inflation might be sticking around for a little longer.
The period of emergency support stimulus is coming to an end.

The Market

⬇️

-0.2%

S&P 500: 4,349.93

1Mo:

-9%

| 1Yr:

+16%

| 5Yr:

+90%

Markets worked through mixed feelings about the Federal Reserve's policy update this afternoon.

Uncertainty around the Fed's plans has been the main cause of the recent market volatility.

Mostly as expected,

the Fed's going to keep slowly shifting away from emergency stimulus mode.

The Fed tries not to surprise people with big updates, so they give general teasers on their next moves to get people ready. In this meeting, they said t

hey'll keep pumping money into the system until March,

trailing off the stimulus program. After that, they

signaled an intention to start raising interest rates back to normal.

Right now, they have baseline rates at 0% to make it easy and cheap to borrow and spend. The Fed thinks

the labor market has recovered enough

, and it's time to act

to make sure inflation doesn't get out of control.

Company Scoops ❤🌎💰

(Click to dig in & vote your reaction, see how others feel)

McDonald's

tries to avoid racial equity audit

Microsoft's

strength continues

Walmart

invests in indoor farming

AT&T

beats out Verizon & T-Mobile

Boeing

tries to find stability

(These links only work for 24 hours while the story is live)

🤓 Inside Scoop...

The Federal Reserve, aka the Central Bank, controls the flow of money. When the economy needs juice, they create more money and lower interest rates to incentivize more lending and spending. When inflation gets high or the economy fully recovers, the Fed raises interest rates and starts to shut down all the supportive stimulus measures. It's a natural part of the economic cycle, but investors don't like change. When investors get fearful, they rotate out of their riskiest positions.